China Union Holdings Acquires 80% Stake in Argentina’s Arizaro Lithium Project for $175 Million

China Union Holdings will acquire 80% ownership of the Arizaro project, which covers approximately 29,245 hectares and includes six exploitation permits on the Salta Altiplano. Arizaro holds measured and indicated lithium carbonate equivalent resources estimated at over 4 million tonnes. The project targets an annual production capacity of 25,000 tonnes of battery-grade lithium carbonate over a projected 20-year lifespan, with an initial capital expenditure budget of approximately $1.055 billion. A prefeasibility study places the project’s pre-tax net present value at $3.85 billion with a 42.1% internal rate of return and a payback period of 2.5 years, using an 8% discount rate.

The transaction requires several approvals, including regulatory clearances, shareholder ratification, and acceptance by the TSX Venture Exchange. Argentum Lithium must also consolidate an additional 17.8% stake in ARLI S.A., which holds the core mining rights, to reach the agreed 80% project ownership. Upon closing, China Union plans to advance detailed engineering, design, and construction planning phases. The environmental impact assessment is in progress, with expectations for final approval by late 2025.

Lithium Chile President Steve Cochrane described the deal as pivotal for unlocking the project’s value and refocusing company resources toward its extensive Chilean lithium portfolio. For China Union Holdings, primarily a real estate developer, this marks a strategic diversification into lithium mining, securing access to one of the world’s richest lithium reserves amid expanding demand for battery materials.

This acquisition complements China’s broader expansion in Argentina’s mining sector, alongside companies like Ganfeng Lithium and Zijin Mining, aiming to secure long-term lithium supply for the growing electric vehicle and energy storage sectors. The evolving ownership landscape underscores Argentina’s significance within the global lithium supply chain, amid rising investment and environmental scrutiny.