Ganfeng Lithium acquires 14.9% stake in Pastos Grandes

VANCOUVER — Lithium Americas (Argentina) finalizes an agreement with a Ganfeng Lithium subsidiary. Under this agreement, Ganfeng Lithium has acquired $70 million in newly issued shares of Proyecto Pastos Grandes S.A. (PGCo), Lithium Argentina’s wholly-owned subsidiary that holds the Pastos Grandes project in Salta, Argentina. This transaction represents a 14.9 per cent stake in PGCo and Pastos Grandes.

“The completion of this transaction is an important step forward for the combined efforts of Lithium Argentina and Ganfeng Lithium in Argentina emphasizing the collaboration and shared commitment of both companies to innovate and responsibly progress the global clean energy transition,” said Sam Pigott, president and CEO of Lithium Argentina. “Proceeds from the transaction will be used to strengthen our balance sheet, reduce short-term debt at Caucharí-Olaroz and provide additional flexibility to support our future growth plans.”

Pastos Grandes is a lithium brine development project acquired in early 2022 through the acquisition of Millennial Lithium. It is located in the Pastos Grandes Basin. The company expects fiscal incentives from the Large Investments’ Incentive Regime (RIGI) in Argentina to apply to its development plans for Pastos Grandes and the Stage 2 expansion of Caucharí-Olaroz. Regional development plans for PPG and the Pastos Grandes Basin are ongoing, with results anticipated around the end of 2024.