Lithium Argentina Commits US$1 Billion to Cauchari-Olaroz Stage 2 Expansion With 45,000 tpa Capacity Addition

Lithium Argentina announced scoping study results for the Stage 2 expansion at its Cauchari-Olaroz operation in Jujuy province, validating a 45,000 tonnes per annum lithium carbonate addition that would lift total site capacity to approximately 85,000 tpa. The study delivered an after-tax net present value of US$3.1 billion at an 8% discount rate and internal rate of return of 28.5%, based on a lithium carbonate reference price of US$18,000 per tonne. Initial capital expenditure for the full expansion is estimated at US$1 billion, translating to capital intensity of US$22,500 per tonne of installed capacity, with operating costs projected at US$5,006 per tonne of lithium carbonate produced. The project carries an estimated 40-year mine life and a five-year payback period.

The company is decoupling development timelines to advance an initial 10,000 tpa module using adsorption-based direct lithium extraction technology, leveraging existing infrastructure and permits to accelerate incremental production. This initial phase targets first production in 2028 subject to regulatory approvals in Argentina and China related to technology transfer and equipment deployment. Engineering for the modular plant has commenced in China, while onsite work including new brine well development is underway at Cauchari-Olaroz. The economic analysis in the scoping study does not incorporate cash flows from this accelerated 10,000 tpa module.

The remaining 35,000 tpa of the Stage 2 expansion would integrate DLE capacity with the existing evaporation pond and lithium carbonate processing infrastructure in a hybrid configuration designed to optimize water consumption and chemical inputs. Extension of adsorption technology beyond the initial 10,000 tpa depends on commercial-scale demonstration of water consumption performance and availability of additional water resources. The company is processing environmental impact assessment approvals with Jujuy authorities, with permitting expected during 2027.

Lithium Argentina has secured approval under the Régimen de Incentivo para Grandes Inversiones, providing fiscal stability, reduced tax rates and foreign exchange access for the long-term capital deployment. CEO Sam Pigott indicated the Stage 2 expansion would be financed through internally generated cash flow from the existing Cauchari-Olaroz operation combined with project-level debt, requiring no additional equity dilution. The Cauchari-Olaroz operation is developed in partnership with Ganfeng Lithium, which completed a US$180 million strategic investment in Lithium Argentina in September. The scoping study base case evaluates brine pre-concentration followed by solvent extraction processing, while the accelerated 10,000 tpa phase deploys adsorption-based DLE as an alternative pathway.