Lithium Argentina AG and Ganfeng Lithium Group Co. Ltd. signed a framework agreement to form a joint venture consolidating Ganfeng's Pozuelos-Pastos Grandes project with their jointly owned Pastos Grandes and Sal de la Puna projects in Argentina, as per Chemweek.Lithium Argentina owns 85% of Pastos Grandes while Ganfeng owns 15%. Sal de la Puna is 65% owned by Lithium Argentina and 35% owned by Ganfeng. Under the joint venture agreement, Ganfeng will hold 67%, while Lithium Argentina will hold 33% of the combined operations, Lithium Argentina said Aug. 12.The companies aim to develop an annual production capacity of up to 150,000 metric tons of lithium carbonate equivalent, using a combination of direct lithium extraction and solar evaporation.In April, Lithium Argentina and Ganfeng signed a letter of intent to jointly develop and consolidate the three contiguous lithium projects located in Argentina’s Pozuelos and Pastos Grandes basins.As part of the new framework agreement, Ganfeng will provide Lithium Argentina with a $130 million, six-year debt facility, in exchange for up to 50% of Lithium America’s offtake from the combined operations’ initial development phase.”With this transformative step forward, we are increasing our ownership into the Pozuelos basin and aligning our interests around a substantially larger-scale operation,” Lithium Argentina President and CEO Sam Pigott said.Ganfeng and Lithium Argentina have already invested a total of about $1.8 billion in acquisition and development costs across the three projects.The companies jointly manage the Cauchari-Olaroz mine, which was Argentina’s top lithium producer in 2024, according to S&P Global Market Intelligence data.
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