[SMM News] Lithium Argentina, Ganfeng Finalize PPG Joint Venture; Ganfeng to Invest $180 Million in Lithium Argentina

Published: Aug 24, 2026 22:58

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SMM August 24: Lithium Argentina AG (TSX/NYSE: LAR) and Ganfeng Lithium Group Co., Ltd. have finalized agreements to consolidate their Pozuelos-Pastos Grandes ("PPG") projects in Salta Province, Argentina, into a single joint venture, alongside a $180 million strategic investment by Ganfeng into Lithium Argentina.

The PPG JV combines Ganfeng's Pozuelos-Pastos Grandes project with Lithium Argentina's Pastos Grandes and Sal de la Puna projects, targeting 150,000 tpa of lithium carbonate equivalent capacity across three phases. Ganfeng holds 67% and will operate the JV; Lithium Argentina holds 33%. Combined historical investment stands at $1.8 billion, with completion expected in September 2026 under new Dutch holding entity Millennial Lithium B.V.

Separately, Ganfeng will subscribe to a $180 million unsecured convertible note, carrying a 4.0% coupon, six-year term, and $12.50 conversion price a roughly 96% premium to Lithium Argentina's five-day VWAP through August 21. Proceeds will retire the company's $259 million convertible debt due January 2027. Upon full conversion, Ganfeng's stake in Lithium Argentina would rise from 9.6% to approximately 16.1%.

The deal deepens a partnership already anchoring Cauchari-Olaroz, Argentina's largest lithium brine operation, where Lithium Argentina holds 44.8% and Ganfeng 46.7%.

SMM View: The transaction extends Chinese capital's growing footprint in South American brine assets, echoing the consolidation already seen across African spodumene supply. It de-risks Lithium Argentina's near-term maturities while adding fresh LCE capacity to global project pipelines, with implications for offtake competition and CIF China pricing across both brine and hard-rock lithium chains.

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