In recent years, the significant fluctuations in lithium prices have subjected enterprises across the industry chain to a rollercoaster of experiences. Although lithium prices have long since lost their former glory, the development prospects of the new energy industry chain remain bright under the advocacy of the global low-carbon economy, and the importance of lithium resources has become increasingly prominent.
As one of the regions with the most abundant lithium resources globally, South America, particularly the "Lithium Triangle" region (Bolivia, Argentina, and Chile), holds over 55% of the world's proven lithium resources. Therefore, South America's lithium resources play a pivotal role in the global energy transition.
Against this backdrop, SMM organized the 2025 SMM South American Lithium Resources Field Trip. Led by Chen Siyu, the project manager of SMM's overseas South American lithium resources field trip, and Zhou Zhicheng, a senior analyst in new energy and lithium batteries, the delegation visited South American lithium-related enterprises, toured local lithium mines and material companies, and held discussions with company executives from May 15 to May 26, 2025, to explore potential opportunities in lithium ore resource development, technological exchanges, and investment cooperation. On May 19, SMM and delegation members headed to Ganfeng Lithium for in-depth exchanges.
Company Profile
SMM and delegation members visited Ganfeng Lithium, where Yu Xingguo, the overall operational head of Minera Exar for the Cauchari-Olaroz project in Jujuy Province, warmly received the delegation and provided a detailed introduction to the company's business development.
As a well-known lithium ore giant in China, Ganfeng Lithium Group's business spans the entire industry chain, from resource extraction, refining and processing, to battery manufacturing and recycling. Its products are widely used in electric vehicles, energy storage systems (ESS), 3C products, chemicals, and pharmaceuticals. The group's lithium ore resources are distributed globally, and it possesses industrialised technologies for "lithium extraction from brine," "lithium extraction from ore," and "lithium extraction from recycling." It has sufficient capacity for lithium compounds and lithium metal, with multiple production sites at home and abroad. It also boasts complete battery manufacturing and recycling technologies, providing sustainable value-added solutions for battery producers and EV manufacturers.
MineraExar is a mining and exploration company in Argentina, established in 2006. It is a joint venture composed of Ganfeng Lithium (46.66%), Lithium Americas (43.04%), and Jujuy Energía y Minería Sociedad del Estado (JEMSE) (85%), dedicated to the development and production of lithium carbonate at the Cauchari-Olaroz salt lake in Jujuy Province.
Ganfeng Lithium's Argentine salt lake project generally adopts the traditional salt lake pond evaporation process, ultimately producing lithium chloride (Mariana project) or lithium carbonate through chemical treatments such as potassium, calcium, and magnesium removal. The company stated that due to significant fluctuations and high uncertainty in the Argentine government's policies, it is not currently considering implementing in-depth integrated construction. Downstream customers have not yet been fully confirmed, and the company may adopt direct sales of industrial-grade lithium carbonate, with customers responsible for terminal purification.
The Mariana project is expected to commence production in July 2025, directly producing lithium chloride instead of following the lithium carbonate route. The second-phase project is still in the pilot stage, with full-scale construction not yet initiated. Other technical routes, including direct lithium extraction (DLE), are being evaluated. The project is planned to have an annual production capacity of 20,000 mt of lithium chloride, while the Zijin Salt Lake project is planned to have an annual production capacity of 25,000 mt of lithium carbonate, with production expected to gradually commence next month.
On the cost side, the cash cost of producing lithium carbonate is approximately $7,000/mt. The domestic cost of processing industrial-grade lithium carbonate into battery-grade lithium carbonate is approximately 3,000 yuan/mt. After the launch of PV power generation, electricity costs will be reduced by 70%, with the proportion of power costs in total costs decreasing from 30% to 10%. If the price of lithium carbonate remains between $9,000 and $10,000 per mt, the factory's operating rate can be maintained at a high level.
Regarding product exports, third-party certification (such as SGS) is required, and the Argentine government dynamically sets minimum export prices based on international market conditions. The price difference between industrial-grade lithium carbonate and battery-grade lithium carbonate is based on SGS certification and has not yet been fully confirmed.
Group photo during the field trip
After the visit, SMM and the field trip members took a group photo together with Ganfeng Lithium to strengthen their cooperation and friendship, believing that there will be deeper exchanges and cooperation in the future!
Through this field trip and survey, SMM and the field trip members gained a deeper understanding of Ganfeng Lithium's development, as well as a more profound knowledge of the market status, development trends, and existing issues in the South American lithium battery industry. They will continue to deepen cooperation with major enterprises to achieve complementary advantages and promote the development of the lithium battery industry.
