Lithium Argentina Finalizes Pastos Grandes Deal with Ganfeng Lithium

Lithium Americas (Argentina) Corp. ("Lithium Argentina") has announced the successful completion of its previously disclosed agreement with a Ganfeng Lithium Co. Ltd. ("Ganfeng Lithium") subsidiary. Under this agreement, Ganfeng Lithium has acquired $70 million worth of newly issued shares in Proyecto Pastos Grandes S.A. ("PGCo"), Lithium Argentina's wholly owned subsidiary managing the Pastos Grandes project in Salta, Argentina. This investment represents a 14.9% stake in both PGCo and the Pastos Grandes project.

The Pastos Grandes project, acquired by Lithium Argentina in early 2022 through its purchase of Millennial Lithium Inc., is a key lithium brine development initiative. Situated within the Pastos Grandes Basin, the project is strategically positioned adjacent to Ganfeng Lithium’s Pozuelos-Pastos Grandes project and approximately 100 km from the operating Caucharí-Olaroz project, which is jointly owned and managed by Lithium Argentina and Ganfeng Lithium.

Anticipated fiscal incentives from Argentina's Large Investments’ Incentive Regime ("RIGI") are expected to support the Company’s long-term regional development plans for Pastos Grandes as well as the Stage 2 expansion of Caucharí-Olaroz. Both Lithium Argentina and Ganfeng Lithium are actively progressing with a regional development strategy for the Pastos Grandes Basin and PPG, with anticipated results expected by the end of 2024.

Sam Pigott, President and CEO of Lithium Argentina emphasized that the successful completion of the transaction with Ganfeng Lithium marks a pivotal milestone for both companies. This collaboration underscores their shared commitment to advancing innovation and responsibly contributing to the global clean energy transition. Pigott detailed that the proceeds from the transaction will be strategically utilized to fortify Lithium Argentina's balance sheet and reduce short-term debt associated with the Caucharí-Olaroz project. Additionally, these funds will enhance the company's financial flexibility, enabling it to better support and accelerate its future growth initiatives.

The investment by Ganfeng Lithium in Lithium Americas (Argentina) Corp.’s Pastos Grandes project marks a pivotal step in advancing lithium production within the strategically important Pastos Grandes Basin. With the project poised to benefit from Argentina's fiscal incentives and the collaborative regional development plans with Ganfeng, the partnership is set to enhance the growth trajectory of both the Pastos Grandes and Caucharí-Olaroz projects.

Lithium Argentina is a rapidly expanding lithium carbonate producer strategically positioned within the high-growth electric vehicle battery market. Leveraging its prime location in Argentina's lithium-rich region, the company is aggressively advancing its flagship Caucharí-Olaroz project in collaboration with global industry leader Ganfeng Lithium. Through this strategic partnership, Lithium Argentina is rapidly scaling operations and expanding its lithium resource footprint to capitalize on the burgeoning demand for battery-grade lithium carbonate. This strategic focus positions the company as a key player in the global energy transition.