Lithium Argentina has executed a Letter of Intent (LoI) with Ganfeng Lithium to advance a plan to jointly develop the Pozuelos-Pastos Grandes basins, which includes Ganfeng’s wholly-owned Pozuelos-Pastos Grandes project, the jointly-owned Pastos Grandes project (85% owned by Lithium Argentina and 15% owned by Ganfeng) and Sal de la Puna project (65% owned by Lithium Argentina and 35% owned by Ganfeng) in Argentina (PPG).

“Following the ramp-up at the Cauchari-Olaroz lithium operation over the past year, we are excited to build on our experience and strengthen our proven partnership model to support these growth plans,” said Sam Pigott, President and CEO of Lithium Argentina.

“Our ongoing efforts to finalize the regional development plan at PPG are encouraging and should present a compelling, low-cost solution to help meet future battery market demand. Combined with our strategic flexibility and collaborative approach, we are well positioned to leverage innovative processing technologies and a global network of partners and customers – all in pursuit of our shared goal of establishing Argentina as a leader in the lithium industry.”

The LoI provides a framework for Ganfeng and Lithium Argentina to consolidate PPG and finalize the regional development plan on the combined resources. Development planning is advancing based on a phased approach utilizing solar evaporation and direct lithium extraction (DLE) with a combined capacity targeting up to 150,000 tonnes per annum (tpa) of lithium carbonate equivalent (LCE).

A 5,000 tpa DLE demonstration plant is currently being manufactured for installation at the nearby Cauchari-Olaroz lithium operation that is jointly managed by Lithium Argentina and Ganfeng. The completion of the DLE demo plant is expected later this year and designed to support the new processing technology, resulting in improved efficiencies and lower overall production and capital costs while reducing the operation’s environmental footprint through lower water usage and a reduced need for reagents.

Ganfeng and Lithium Argentina are jointly exploring financing options for PPG, including collaboration with potential customers and strategic partners for offtake and minority ownership interests.