A High-Altitude Alliance for Cleaner Lithium

Ganfeng and Lithium Argentina form major partnership for greener lithium mining

11 Nov 2025

Argentina has taken a major step toward sustainable mineral production with a framework agreement between China’s Ganfeng Lithium and Lithium Argentina. The two companies plan to merge their neighbouring projects in Salta Province, creating one of South America’s largest and most environmentally focused lithium operations.

Announced in August 2025, the accord brings together the Pozuelos–Pastos Grandes and Sal de la Puna assets, representing a combined historical investment of about $1.8bn. Ganfeng will hold a 67 per cent stake, while Lithium Argentina will retain 33 per cent. The venture aims to reach annual production of up to 150,000 tonnes of lithium carbonate once fully developed, supported by a six-year financing plan worth $130mn for early-stage expansion.

The partners intend to employ a hybrid extraction process that combines traditional solar evaporation with emerging direct lithium extraction (DLE) technology. The method is designed to lower water consumption and shorten production cycles, addressing two key challenges in Argentina’s high-altitude salt flats. Industry analysts say the initiative could set a precedent for cleaner lithium production across the region if the technology delivers as expected.

“This collaboration is about more than scale; it’s about setting a new benchmark for responsible lithium production,” said Ganfeng vice-president Wang Xiaoshen. “We’re aligning with Argentina’s growth goals and the global transition to clean energy.”

The agreement is pending regulatory approval, with completion anticipated in the first quarter of 2026. Its announcement comes as Argentina seeks to position itself as a reliable supplier of critical minerals amid rising global demand for electric-vehicle batteries.

With lithium consumption forecast to triple by 2030, Argentina’s pro-investment policies and resource base continue to attract international capital. If finalised, the Ganfeng–Lithium Argentina alliance would reinforce the country’s standing in the global energy transition, pairing industrial scale with environmental innovation.