Ganfeng Lithium Group has completed a $180 million strategic investment in Lithium Argentina through a six-year convertible note as the companies prepare to expand lithium production in Argentina.
Lithium Argentina said it has closed the investment, which was agreed in August and is structured through the issuance of an unsecured six-year convertible note. The transaction strengthens the miner’s financial position as it prepares to expand Caucharí-Olaroz in Jujuy province and advances the integration of the Pozuelos-Pastos Grandes (PPG) project in Salta province with Ganfeng.
The transaction was announced in August alongside definitive agreements to combine three lithium brine projects in Salta – Pozuelos-Pastos Grandes, Pastos Grandes and Sal de la Puna – in a joint venture owned 67% by Ganfeng and 33% by Lithium Argentina. The integrated development is planned to reach 150,000 metric tons of lithium carbonate equivalent (LCE) per year in three phases and has applied for Argentina’s Incentive Regime for Large Investments (RIGI).
The note issued to Ganfeng carries an annual interest rate of 4%, matures six years after issuance and can be converted into Lithium Argentina common shares at $12.50 per share. Lithium Argentina will use the proceeds, together with available cash, to fully repay $259 million in convertible notes due in January 2027.
Ganfeng currently owns about 9.6% of Lithium Argentina’s issued and outstanding common shares. If the new note is fully converted, Ganfeng would receive 14.4 million additional shares, increasing its stake to approximately 16.1% on a fully diluted basis.
The transaction is also linked to Lithium Argentina’s expansion plans for Caucharí-Olaroz. In May, Argentina approved a $1.24 billion RIGI investment for the second stage of the lithium complex in Jujuy, operated by Lithium Argentina and Ganfeng. The expansion is planned to add 45,000 metric tons per year of LCE capacity.
Lithium Argentina said the new financial structure, together with cash distributions from Caucharí-Olaroz, will allow it to advance the second stage and gradually support development of PPG. The companies expect to complete the joint venture for PPG by the end of September.
Lithium Argentina owns 44.8% of Caucharí-Olaroz, Ganfeng owns 46.7%, and Jujuy state-owned company JEMSE owns 8.5%. The facility is designed to produce 40,000 metric tons per year of lithium carbonate. The operation produced approximately 25,400 metric tons during 2024 as it continued commissioning.
The relationship between the companies forms part of a broader investment strategy by Ganfeng in Argentina. In March, the Chinese lithium producer said it was evaluating investments of around $3 billion in Argentina to expand its presence in lithium extraction and processing projects.
Caucharí-Olaroz is also directly linked to renewable power generation. Since 2023, part of the operation’s electricity has been supplied by YPF Luz’s Zonda solar plant under a 10-year agreement covering 36,000 MWh per year. At the start of production, around 30% of the operation’s electricity consumption was supplied by renewable energy.
From pv magazine LatAm
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