Lithium Argentina (NYSE:LAR) has finalised a joint venture with Ganfeng Lithium Group (SZSE:002460) and secured a US$180 million ($251 million) strategic investment from the Chinese lithium producer.
The companies have entered definitive agreements to establish the Pozuelos‑Pastos Grandes joint venture (PPG JV), consolidating three adjacent lithium projects in Argentina’s Salta province.
Ganfeng will hold 67% of the PPG JV, with LAR retaining 33%. The venture combines Ganfeng’s Pozuelos‑Pastos Grandes Project with LAR’s Pastos Grandes and Sal de la Puna projects, representing a combined historical investment of US$1.8 billion.
Concurrently, Ganfeng has agreed to invest US$180 million in LAR through a six‑year unsecured convertible note carrying a 4% coupon.
The note converts into common shares at US$12.50 per share, representing a 96% premium to the five‑day volume-weighted average price on the NYSE.
“These transactions strengthen our balance sheet and minimize dilution for our shareholders, while positioning both Cauchari-Olaroz and PPG to deliver significant value,” CEO Sam Pigott says.
The company plans to use proceeds to fully repay its US$259 million convertible debt due January 2027, extending its debt maturity profile.
“The PPG JV and this strategic investment reflect the strength of a partnership built over nearly a decade and more than US$2 billion of combined investment in Argentina’s lithium sector,” Ganfeng CEO Wang Xiaoshen says.
Ganfeng’s Salta‑based team will act as operator, with a joint technical and financial committee overseeing major decisions.
Both transactions are expected to close in September, subject to customary approvals.
Ganfeng Lithium Group is a Chinese lithium producer and one of the world’s largest lithium compounds and battery metals suppliers, with operations spanning Australia, Argentina, Mexico, and China.
Lithium Argentina is a lithium producer with its flagship Cauchari‑Olaroz operation in Argentina’s lithium triangle.
Write to JC Villarba at Mining.com.au
Images: Lithium Argentina
