China’s Ganfeng Bets Big on Argentina’s Lithium Future

Ganfeng and Lithium Argentina form $130M joint venture to merge brine assets and scale EV battery supply

4 Nov 2025

China’s Ganfeng Lithium and Lithium Argentina have agreed to form a joint venture that will combine their neighboring brine deposits in Argentina’s Salta province, aiming to create one of South America’s largest integrated lithium platforms.

Announced in August 2025, the framework agreement will merge Ganfeng’s Pozuelos–Pastos Grandes with Lithium Argentina’s Pastos Grandes and Sal de la Puna projects. The transaction, expected to close in early 2026 pending regulatory approvals, could yield as much as 150,000 tonnes of lithium carbonate equivalent annually once fully developed.

Under the proposed structure, Ganfeng will hold about 67 per cent of the new entity, with Lithium Argentina retaining 33 per cent. To support initial funding, Ganfeng has provided a six-year, $130mn debt facility to its partner, aimed at aligning short-term liquidity with long-term project development.

The venture brings together Ganfeng’s financing capacity and extraction technology with Lithium Argentina’s operational expertise and domestic footprint. The companies plan to use a hybrid extraction process that combines direct lithium extraction with solar evaporation, designed to reduce water use and environmental impact in high-altitude brine fields.

“The alliance will provide access to advanced technologies, greater financial flexibility and significant operational synergies,” said Sam Pigott, chief executive of Lithium Argentina.

Analysts say the move reflects growing consolidation across Argentina’s lithium sector as producers seek economies of scale and improved efficiency within the so-called Lithium Triangle, which spans Argentina, Bolivia and Chile. Rising electric-vehicle demand and constrained global supply have pushed companies to secure larger, more efficient production bases.

The project’s outlook, however, depends on successful permitting, environmental clearance and technology implementation. Despite these uncertainties, the agreement highlights increasing investor confidence in Argentina’s resource potential and its role in the global shift toward cleaner energy.