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China’s Ganfeng Lithium Group is set to unify its lithium assets in Argentina’s Pozuelos-Pastos Grandes Salt Lake Basin through a partnership with Lithium Argentina, which will also receive a $130 million loan from Ganfeng.
The two companies will combine ownership of the high-altitude salt flats at Pastos Grandes, the neighboring Pozuelos-Pastos Grandes region, and other salt lake mining sites located on Argentina’s Puna Plateau. These assets—either fully owned or jointly held—will be transferred to a subsidiary of Lithium Argentina, a collaborative effort by the battery materials giant based in Xinyu.
This move reflects a strategic step by Ganfeng, one of the leading global producers of lithium, which has been operating in Argentina for over ten years. Argentina, along with Bolivia and Chile, is part of the famed “Lithium Triangle,” a region known for its extensive lithium reserves.
Post-reorganization, Ganfeng’s wholly owned subsidiary will hold a 67% stake in the new joint venture, with Lithium Argentina maintaining the remaining 33%. Lithium Argentina will leverage its ownership stake as collateral in securing the $130 million loan from Ganfeng.
The joint venture plans to construct a lithium salt separation plant to process materials from the Pozuelos and Pastos Grandes salt lakes. The project will be developed in three phases, aiming to produce approximately 150,000 tons of lithium carbonate equivalent annually when complete.
Ganfeng highlighted that consolidating these assets will create a large-scale and sustainable supply chain for lithium salts, which are vital components in electric vehicle batteries. This integration is expected to optimize resource utilization and reinforce Ganfeng’s lithium supply capabilities.
Additionally, Ganfeng has an indirect stake in Lithium Argentina. Its subsidiary, GFL International, owns nearly 10% of a Swiss-registered lithium carbonate producer. The companies have previously collaborated on lithium extraction from Argentina’s Cauchari-Olaroz salt lake, which began production in 2023.
Before this latest agreement, Ganfeng held full rights to develop the Pozuelos-Pastos Grandes salt lake, while the ownership of other nearby salt lakes was divided, with Lithium Argentina previously controlling a majority stake.
Despite these strategic asset consolidations, Ganfeng’s stock price declined by 1.3%, closing at 38.93 yuan (about $5.40) today.
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