Ganfeng Lithium, through a subsidiary, has completed its stake acquisition in Proyecto Pastos Grandes (PGCo), a Lithium Argentina unit that holds the Pastos Grandes lithium brine development project.
The deal resulted in Ganfeng Lithium investing C$70m to acquire a 14.9% stake in PGCo.
Lithium Argentina acquired the Pastos Grandes project in Salta, Argentina in early 2022 through the purchase of Millennial Lithium.
The project is located in the same basin as the Sal de la Puna project.
It is adjacent to Ganfeng Lithium’s Pozuelos-Pastos Grandes project and is 100km from the operational Caucharí-Olaroz project.
The latter is a joint venture between Lithium Americas and Ganfeng Lithium, reinforcing the collaborative relationship between the two companies in the region.
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By GlobalData
Lithium Americas anticipates that the project will benefit from the Argentinian government’s Large Investments’ Incentive Regime, which offers attractive fiscal incentives.
These incentives are expected to support the company’s long-term regional development plans at Pastos Grandes, as well as the Stage 2 expansion of the Caucharí-Olaroz project.
The partnership between Lithium Americas and Ganfeng Lithium is set to continue as they advance a regional development plan for the Pastos Grandes Basin and PPG.
The companies expect to deliver results from this plan around the end of 2024, marking a significant milestone in the development of lithium resources in Argentina.
Lithium Argentina president and CEO Sam Pigott stated: “The completion of this transaction is an important step forward for the combined efforts of Lithium Argentina and Ganfeng Lithium in Argentina, emphasising the collaboration and shared commitment of both companies to innovate and responsibly progress the global clean energy transition.
“Proceeds from the transaction will be used to strengthen our balance sheet, reduce short-term debt at Caucharí-Olaroz and provide additional flexibility to support our future growth plans.”
