Ganfeng Lithium has recently taken a significant step forward in the lithium market by acquiring a stake in Lithium Americas' Pastos Grandes lithium project, located in Salta, Argentina. Through a subscription to up to $70 million (equivalent to 503.95 million yuan) worth of new shares, Ganfeng Lithium has solidified its position in this promising venture. This move comes as a result of a definitive agreement reached between Lithium Americas and a subsidiary of Ganfeng Lithium.

The infusion of capital from Ganfeng Lithium marks a substantial investment, granting the company a nearly 15% interest in Proyecto Pastos Grandes S.A. (PGCo), an indirect wholly owned subsidiary of Lithium Americas responsible for overseeing the project. The Pastos Grandes project, strategically located in the same basin as the Sal de la Puna project, is adjacent to Ganfeng Lithium's own PPG project and sits just 100 kilometers from the operational Caucharí-Olaroz project, a successful joint venture between Lithium Americas and Ganfeng Lithium. In their joint effort, Ganfeng Lithium and Lithium Americas will commence the development of a regional plan for the Pastos Grandes Basin and PPG. Moreover, they are exploring the integration of Ganfeng Lithium's direct lithium extraction technology into the existing conventional solar evaporation process at Pastos Grandes, potentially enhancing efficiency and sustainability.

The proceeds from Ganfeng Lithium's investment will be allocated towards advancing the development of Lithium Americas' lithium projects in Argentina. Despite this substantial progress, the offtake rights for PGCo remain uncommitted. Lithium Americas is actively engaged in seeking new customers and exploring financing options to accelerate the development of a global lithium chemical supply chain. Regulatory approvals are pending, and the deal is expected to be finalized in the second quarter of 2024.

Upon completion of the transaction, Ganfeng Lithium will have the opportunity to increase its stake in PGCo by up to 1.6%, contingent upon the outcomes of an independent resource estimation process. This transaction underscores Ganfeng Lithium's long-term commitment to Salta and the sustainable development of Argentina's lithium industry. While Lithium Americas continues to prioritize the ramp-up at Caucharí-Olaroz, already one of the largest lithium brine operations in Argentina, this transaction further fortifies the company's balance sheet and amplifies its growth prospects by leveraging existing teams and nearby operations.

Ganfeng Lithium Co., Ltd. is a corporation specializing in the production of lithium, lithium derivatives, various metals, and batteries both within China and on a global scale. Established in 2000 by Li Liangbin, the company's headquarters are situated in Xinyu, Jiangxi Province.