Can Lithium’s New Alliance Spark a Greener Boom?

Lithium Argentina and Ganfeng merge Salta projects to cut costs, boost sustainability, and reshape regional lithium output

28 Oct 2025

Lithium Argentina and China’s Ganfeng Lithium have agreed to merge their neighboring operations in northern Argentina, forming one of the region’s largest integrated lithium ventures.

Announced on 22 September 2025, the deal combines Ganfeng’s Pozuelos–Pastos Grandes project with Lithium Argentina’s Pastos Grandes and Sal de la Puna sites in Salta Province. The new entity could produce up to 150,000 tonnes of lithium carbonate a year, placing it among South America’s biggest planned producers.

The merger seeks to lower costs, speed development and reduce environmental impact. Shared infrastructure, including power, water and processing facilities, is expected to cut operating expenses by up to 20 per cent. The partners also plan to test extraction technologies that use less water, a key concern in the arid Andean plateau.

Ganfeng will hold a 67 per cent stake and invest about $130mn to fund construction and development, while Lithium Argentina will retain 33 per cent. The structure strengthens Ganfeng’s position in South America’s lithium market and allows its partner to maintain exposure with limited financial risk.

Analysts view the transaction as part of a broader wave of consolidation in Argentina’s lithium sector, as producers seek economies of scale and stronger links to the global battery supply chain. Industry observers expect smaller exploration groups to pursue similar alliances to stay competitive.

The project still faces challenges from Argentina’s volatile economic conditions, regulatory uncertainty and local concerns over foreign participation in resource extraction. Nevertheless, the merger represents a significant step toward more efficient and sustainable lithium production in the region. If successful, it could provide a template for future collaborations aimed at meeting growing global demand for clean energy materials.