Toronto- and New York-listed Lithium Argentina has announced a potential new joint venture (JV) with Ganfeng Lithium to jointly develop and consolidate the Pozuelos-Pastos Grandes (PPG) basins.

Argentina Lithium and Ganfeng, which are partners on the Cauchari-Olaroz lithium brine operation, have signed a letter of intent (LoI) to advance a regional plan for PPG.

The assets covered in the LoI include Ganfeng’s wholly-owned Pozuelos-Pastos Grandes project, the jointly-owned Pastos Grandes project (85% owned by Lithium Argentina and 15% owned by Ganfeng) and Sal de la Puna project (65% owned by Lithium Argentina and 35% owned by Ganfeng) in Argentina.

“Following the ramp-up at the Cauchari-Olaroz lithium operation over the past year, we are excited to build on our experience and strengthen our proven partnership model to support these growth plans,” said Lithium Argentina president and CEO Sam Pigott.

“Our ongoing efforts to finalise the regional development plan at PPG are encouraging and should present a compelling, low-cost solution to help meet future battery market demand. Combined with our strategic flexibility and collaborative approach, we are well positioned to leverage innovative processing technologies and a global network of partners and customers – all in pursuit of our shared goal of establishing Argentina as a leader in the lithium industry.”

The LoI provides a framework for Ganfeng and Lithium Argentina to consolidate PPG and finalise the regional development plan on the combined resources.

Development planning is advancing based on a phased approach using solar evaporation and direct lithium extraction (DLE) with a combined capacity targeting up to 150 000 t/y of lithium carbonate equivalent.

In addition to lithium carbonate, the regional development plan considers the production of lithium chloride to provide added flexibility for use in battery markets. The regional development plan is expected to unlock significant synergies that will result in a larger, lower-cost operation than could be achieved on a standalone basis.

A 5 000 t/y DLE demonstration plant is currently being manufactured for installation at the nearby Cauchari-Olaroz lithium operation. The completion of the DLE demo plant is expected later this year and designed to support the new processing technology, resulting in improved efficiencies and lower overall production and capital costs while reducing the operation’s environmental footprint through lower water usage and a reduced need for reagents.

Ganfeng and Lithium Argentina are exploring financing options for PPG, including collaboration with potential customers and strategic partners for offtake and minority ownership interests.

The formation of the new JV for PPG remains subject to a number of conditions.