Lithium Argentina has signed definitive agreements with Ganfeng to establish a joint venture (PPG JV) consolidating the Pozuelos-Pastos Grandes lithium projects (PPG) in Salta Province.
As part of the arrangement, Ganfeng will invest $180m in Lithium Argentina through a six-year unsecured convertible note
Ganfeng and Lithium Argentina will hold 67% and 33% interests, respectively, in the JV. The project targets annual lithium carbonate equivalent production of 150,000t across three phases using shared infrastructure and resources. The convertible note carries a 4% coupon and allows Ganfeng to convert the instrument into Lithium Argentina common shares at $12.50 per share.
Proceeds from the investment, combined with existing cash, are earmarked to repay in full Lithium Argentina’s $259m (390.96bn pesos) convertible debt due January 2027, extending the company’s maturity profile on an unsecured basis and altering its debt structure. The newly formed PPG JV brings together Ganfeng’s Pozuelos-Pastos Grandes project and Lithium Argentina’s Pastos Grandes and Sal de la Puna projects, consolidating them into a single basin-wide development initiative. Under the terms, major decisions, project funding above $20m per year and development plans will require joint approval.