Lithium Argentina and Ganfeng to Form New Joint Venture to Consolidate the Pozuelos and Pastos Grandes Basins
Lithium Argentina and Ganfeng to Form New Joint Venture to Consolidate the
Pozuelos and Pastos Grandes Basins
ZUG, Switzerland, Aug. 12, 2025 -- Lithium Argentina AG. (“Lithium Argentina ” or the “Company”) (TSX: LAR) (NYSE: LAR)
is pleased to announce the execution of a framework agreement (the “ Framework Agreement ”) with Ganfeng Lithium Group
Co. Ltd. (“ Ganfeng”) to establish a new joint venture (“ New JV ”) consolidating Ganfeng’s solely owned Pozuelos-Pastos
Grandes project with Lithium Argentina’s Pastos Grandes project (85% owned) and the Sal de la Puna project (65% owned),
(collectively, “PPG”). Upon closing, Ganfeng will hold 67% and Lithium Argentina 33% of PPG, with ownership based on
resources, capital contributions and technology inputs.
Highlights:
• Regional growth consolidation. Combining three contiguous lithium brine projects in Salta, Argentina into a newly
formed joint venture, creating unified development platform.
• Global-scale operation. Targeting up to 150,000 tonnes per annum (“ tpa”) of lithium carbonate equivalent (“ LCE”)
production capacity in three phases, positioning New JV among largest operations globally.
• Advanced processing technologies . Utilizing a hybrid of direct lithium extraction (“ DLE”) and solar evaporation to
enhance scalability and improve efficiency.
• Proven partnership model. Structured on the existing partnership between Ganfeng and Lithium Argentina used to
develop the Cauchari-Olaroz Stage 1, leveraging the parties’ local expertise, operational teams and proximity in
northern Argentina.
• Feasibility study nearing completion. Results expected to be released by year-end, to be incorporated into an
application under Argentina's Incentive Regime for Large Investments (“RIGI”) targeted for submission in H1 2026.
• Combined financing effort. Both parties are jointly pursuing financing options to fund development costs, including
collaboration with strategic partners and potential customers for offtake and minority equity interests and project
financing.
• De-risked balance sheet. Ganfeng to provide Lithium Argentina with a 6-year, $130 million debt facility at SOFR plus
2.5% (the “ Debt Facility ”), providing capacity to refinance corporate debt and further strengthen the Company’s
balance sheet.
“This transaction builds on our successful partnership with Ganfeng at Cauchari-Olaroz, Argentina’s largest lithium operation,”
said Sam Pigott, President and CEO of Lithium Argentina. “With this transformative step forward, we are increasing our
ownership into the Pozuelos basin and aligning our interests around a substantially larger-scale operation. The New JV will
provide access to advanced technologies, increased financial flexibility and meaningful operating synergies. It represents an
important milestone in our strategy to develop a diversified, scalable and sustainable global lithium supply chain while
strengthening our balance sheet and creating lasting value for our shareholders.”
Project Details
Since acquiring the Pastos Grandes project through its purchase of Millennial Lithium in 2022, and its 65% interest in Sal de
la Puna through the acquisition of Arena Minerals in 2023, Lithium Argentina has advanced a hydrogeological model,
completed environmental baseline studies, update resource estimates and constructed a pilot evaporation pond system.
Ganfeng acquired the Pozuelos-Pastos Grandes project in 2022 from Pluspetrol Resources for $1.0 billion and has since
invested an additional $200 million to advance development, including infrastructure, a production wellfield and an over 2,000-
person construction camp.
In total, Lithium Argentina and Ganfeng have invested approximately $1.8 billion in acquisition and development costs across
the combined PPG assets.
The current development plan, with a feasibility study underway, targets a phased production capacity of up to 150,000 tpa of
LCE in three phases of 50,000 tpa each. The feasibility study will evaluate both lithium carbonate and lithium chloride
production to provide added flexibility for use in battery markets and will use a hybrid flowsheet combining DLE and solar
evaporation to optimize scalability and efficiency. Results of the Feasibility Study are expected to be released by the end of
2025 and will be used to support a RIGI application, which is expected to be formally submitted in the first half of 2026.
The partners are jointly pursuing financing options to fund further development, including collaboration with potential customers
and strategic partners for offtake agreements, minority equity interests and project financing.
Debt Facility
In connection with the New JV, Ganfeng has agreed to provide Lithium Argentina with a $130 million, six-year debt facility
bearing interest at SOFR plus 2.5%. The Debt Facility enhances Lithium Argentina’s financial flexibility, providing capacity to
refinance corporate debt and further strengthen the Company’s balance sheet.
As part of the Debt Facility, Lithium Argentina has agreed to allocate up to 50% of its offtake from the initial development
phase of PPG - capped at 6,000 tpa of LCE - to Ganfeng at market prices.
The Debt Facility will be prepayable without penalties and secured by Lithium Argentina’s equity interest in PPG, which may
be released and subordinated to new corporate debt financings. Implementation of the Debt Facility remains subject to
finalization of the New JV and customary approvals.
New JV Details
Pursuant to the Framework Agreement, the parties have committed to immediately undertaking a series of steps that will
serve as the legal and business foundation for the New JV, including: (i) settlement of definitive agreements covering key
commercial terms of the New JV, including a shareholder agreement or equivalent, operating agreement, offtake agreement
and technology license agreement; (ii) completion of a development plan; and (iii) completion of the definitive loan agreement
for the Debt Facility. Each of these steps constitutes a condition to formation of the New JV, along with other customary
conditions including regulatory approvals and applicable stock exchange approvals. The New JV is expected to close by Q1
2026.
ABOUT LITHIUM ARGENTINA
Lithium Argentina is an emerging producer of lithium carbonate for use primarily in lithium-ion batteries and electric vehicles.
The Company, in partnership with Ganfeng operates the Caucharí-Olaroz lithium brine operation in the Jujuy province of
Argentina and advancing PPG in the Salta province of Argentina. Lithium Argentina currently trades on the TSX and on the
NYSE under the ticker “LAR”.
For further information contact:
Investor Relations
Telephone: +1 778-653-8092
Email: [email protected]
Website: www.lithium-argentina.com
FORWARD-LOOKING INFORMATION
This news release contains “forward-looking information” and “forward-looking statements” (which we refer to collectively as
forward-looking information) under the provisions of applicable securities legislation. Forward-looking information can be
identified by the use of words such as seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”,
“predict”, “propose”, “potential”, “target”, “intend”, “could”, “might”, “should”, “believe”, “scheduled”, “implement” and similar
words or expressions. All statements, other than statements of historical fact, are forward-looking information. Forward-looking
information in this news release include, without limitation, information with respect to the following matters or the Company’s
expectations relating to such matters: the formation of the New JV and the value derivable therefrom; the Company’s economic
interest in PPG; the completion of a feasibility study in respect of PPG; the finalization of a regional development plan for
PPG; financing of the development of PPG, including the involvement of third-party investors or offtakers; the use and effects of
DLE technology; operating and economic parameters of PPG; the timing and amount of future production and expected
capacity of production of PPG; the completion, timing and terms of the Facility; and the Company’s ability to refinance
corporate debt.
Forward-looking information may involve known and unknown risks, assumptions and uncertainties which may cause the
Company’s actual results or performance to differ materially. This information reflects the Company’s current views with
respect to future events and is necessarily based upon a number of assumptions that, while considered reasonable by the
Company today, are inherently subject to significant uncertainties and contingences, and accordingly, the Company can give
no assurance that these assumptions and expectations will prove to be correct. With respect to forward-looking information
included in this news release, the Company has made assumptions regarding, among other things: current technological
trends; the business relationship between the Company and its joint venture partner; ability to fund its operations; the ability to
operate in a safe and effective manner; uncertainties relating to maintaining mining, exploration, environmental and other
permits or approvals in Argentina; demand for lithium; impact of increasing competition in the lithium business, including the
Company’s competitive position in the industry; general economic conditions; stability and support of legislative, regulatory
and community environment in the jurisdiction where it operates; estimates of and changes to market prices for lithium and
commodities; estimates costs for the project or operation; estimates of mineral resources and mineral reserves, including
whether mineral resources will ever be developed into mineral reserves; reliability of technical data; and the ability to achieve
full production; and accuracy of budget and estimates.
Forward-looking information also involves known and unknown risks that may cause actual results to differ materially, these
risks include, among others: risk that the Company may not be able to form the New JV and derive value therefrom as
anticipated, or at all; risk that the Company may not be able to finalize the feasibility study as anticipated, or at all; risk that
the Company may not be able to finalize the RIGI application as anticipated, or at all; risk that the Company may not be able
to finalize the regional development plan as anticipated, or at all; risk that the Company may not be able to finance the
development of PPG as contemplated, or at all; risk that the Company may not be able to attract third party investors for the
development of PPG as contemplated, or at all; risk that the Company will not be able to implement DLE technology; the
operations may not operate and produce as planned; cost overruns; market prices affecting development of the operation; risks
associated with co-ownership arrangements; risks with ability to successfully secure adequate financing if necessary; risks to
the growth of the lithium markets; lithium prices; inability to obtain any future required governmental permits and that
operations may be limited by government-imposed limitations; technology risk; inability to achieve and manage expected
growth; political risk associated with foreign operations, including co-ownership arrangements with foreign domiciled partners;
emerging and developing market risks; risks associated with not having production experience; operational risks; changes in
government regulations; changes in environmental requirements; failure to obtain or maintain necessary licenses, permits or
approvals; insurance risk; receipt and security of mineral property titles and mineral tenure risk; changes in project or
operation parameters; uncertainties associated with estimating mineral resources and mineral reserves, including uncertainties
regarding assumptions underlying such estimates; whether mineral resources will ever be converted into mineral reserves;
opposition to the; geological or technical or processing problems; liabilities and risks; health and safety risks; unanticipated
results; unpredictable weather; unanticipated delays; reduction in demand for lithium; inability to generate profitable
operations; restrictive covenants in debt instruments; intellectual property risks; dependency on key personnel; currency and
interest rate fluctuations; and volatility in general market and industry conditions. Additional risks, assumptions and other
factors are set out in the Company’s management discussion analysis and most recent Annual Report on Form 20-F, copies
of which are available on SEDAR+ at www.sedarplus.ca
Although the Company has attempted to identify important risks and assumptions, given the inherent uncertainties in such
forward-looking information, there may be other factors that cause results to differ materially. Forward-looking information is
made as of the date hereof and the Company does not intend, and expressly disclaims any obligation to, update or revise the
forward-looking information contained in this news release, except as required by law. Accordingly, readers are cautioned not
to place undue reliance on forward-looking information.