The consolidated operation represents a cumulative investment of $3 billion across three development phases. Initial production will utilize traditional evaporation pond technology, but subsequent phases will transition to Direct Lithium Extraction (DLE) processes that reduce water and energy intensity, addressing environmental concerns in the Andean region where Ganfeng is actively researching water consumption reduction solutions.
Concurrent with the joint venture formation, Ganfeng agreed to invest $180 million in Lithium Argentina through a six-year convertible note, strengthening the financial foundation of the partnership. Sam Pigott, CEO of Lithium Argentina, characterized the consolidated venture as combining three complementary projects into a single large-scale operation. Ganfeng CEO Wang Xiaoshen emphasized the partnership reflects nearly a decade of collaboration and more than $2 billion in combined investment in Argentina’s lithium sector, with shared ambitions to exceed 200,000 tonnes per annum of LCE capacity.
The consolidated project sits in a highly prospective lithium brine region. Adjacent properties include Liontown’s recently announced Centenario project, where the Australian company executed a farm-in agreement with NEXT Lithium on September 1 to acquire up to 100 percent interest through staged investments totaling $40 million in expenditures and $155 million in milestone payments over four years. The Centenario property borders the Pozuelos-Pastos Grandes project to the west and Eramet’s Centenario-Ratones operation to the south, which is expanding toward 150,000 tonnes annual capacity.
Lithium Argentina currently operates the Cauchari-Olaroz project in Jujuy province as a joint venture with Ganfeng, producing 34,000 tonnes of high-purity lithium carbonate in 2025 with expansion to 35,000 tonnes expected in the second half of 2026. The Cauchari-Olaroz expansion was selected for inclusion in Argentina’s RIGI investment incentive program in the first half of 2026. Recent revisions to Argentine mining legislation have facilitated project development in provinces including Salta, where the Argentina Mining 2026 convention opened September 2 with focus on lithium, copper and investment opportunities.
This article was curated and published as part of our South American energy market coverage.
