[SMM Analysis ] The production capacity of Lithium Argentina will reach 235,000 tonnes in 2038.

In late this month, Lithium Argentina announced its fourth quarter and full-year 2025 results, along with an outlook on subsequent expansion plans.

• The company holds a 44.8% equity interest in the Cauchari-Olaroz project.

• The company's flagship Cauchari-Olaroz project currently has an annual production capacity of 40,000 tons, with plans to expand by 45,000 tons per year.

• In the fourth quarter of 2025, the company produced approximately 9,700 tons of lithium carbonate. For the full year of 2025, production reached 34,100 tons, including 359 tons of lithium chloride (in LCE terms) produced and sold to Ganfeng Lithium in the first half of 2025 to support the startup of Ganfeng's Mariana project. 2025 production reached the upper end of the guidance range of 30,000-35,000 tons, representing a 34% increase year-over-year compared to 2024.

• Cost of sales in the fourth quarter of 2025 was US$66 million, with cash operating costs for lithium carbonate at US$5,618 per ton. The reduction in operating costs was driven by structural optimization and operational efficiency improvements, with these cost-saving effects expected to be sustainable. Revenue in the fourth quarter of 2025 was US$92 million, with an average realized selling price for lithium carbonate of approximately US$9,049 per ton. Due to a significant increase in market prices since late 2025, the average realized selling price for lithium carbonate in the first quarter of 2026 is expected to be approximately US$17,000 per ton.

• 2026 production guidance for lithium carbonate is set at 35,000-40,000 tons. With continued optimization and lean operations, production is expected to steadily increase in 2026, supporting the project's long-term operational performance.

Regarding the PPG project and Cauchari-Olaroz expansion:

• Cauchari-Olaroz Stage 2 Expansion: The Cauchari-Olaroz project is advancing expansion plans, aiming to add 45,000 tons per year of lithium carbonate production capacity.

• Measured and indicated lithium resources increased by 42%, reaching 28.1 million tons of lithium carbonate equivalent, with an average lithium grade of 562 mg/L.

• Leveraging the better-than-expected operational performance of the Cauchari-Olaroz project, the 5,000-ton-per-year DLE plant will continue to be built, with the first unit to be deployed at Ganfeng Lithium's adjacent Mariana project for technology integration and operational validation.

• The Stage 2 expansion plan, incorporating DLE technology, is expected to be completed by mid-2026.

• The application for the Large Investment Incentive Regime (RIGI) and the environmental permit for the Stage 2 project were both submitted in December 2025.

  PPG Project: Three-phase integrated development, with a total target capacity of 150,000 tonnes/year LCE

• PPG is expected to have an annual capacity of 25,000 tonnes when it begins production in 2029, subsequently increasing to 50,000 tonnes in 2031, 100,000 tonnes in 2034, and reaching the design capacity of 150,000 tonnes/year in 2038.

•  The detailed preliminary study was completed in December 2025. Based on the assumption of a lithium carbonate price of US$18,000/tonne, the project's after-tax net present value (at an 8% discount rate) is US$8.1 billion, with an internal rate of return (IRR) of 33%.

• Phase 1 environmental permit was obtained in November 2025, and the RIGI application was submitted in February 2026.

• Integration of the new joint venture company for the PPG project has been largely completed, with the closing expected in the second quarter of 2026.

• Ganfeng Lithium and Lithium Argentina are in discussions with potential customers and strategic partners on financing solutions, while simultaneously advancing offtake and minority equity cooperation.

The company is considering applying for a secondary listing on the Australian Securities Exchange (ASX) or the Hong Kong Stock Exchange (HKEX), to broaden its investor base in the Asia-Pacific region while maintaining its listing on the New York Stock Exchange.

Source: Lithium Argentina official website, compiled by SMM