Photo: Wikimedia Commons.
Chinese mining company Ganfeng Lithium, a world leader in lithium carbonate production, has agreed to purchase 15% of the Pastos Grandes project in Argentina for $70 million. The deal, through the acquisition of shares in subsidiary Proyectos Pastos Grandes SA (PGCo) – itself part of Canadian mining company Lithium Americas – aims to boost lithium development in the region.
The transaction, which is subject to regulatory approval, will strengthen Ganfeng’s position in Argentina, where it is already the second largest shareholder of Lithium Americas (Argentina). The Pastos Grandes project will use the funds to develop the lithium salt flat in the Pastos Grandes basin, located 13 km southeast of the town of Santa Rosa de Pastos Grandes in the province of Salta, with the capacity to produce lithium carbonate for batteries.
With adjacent projects such as Sal de la Puna – also located in Salta province – and Caucharí-Olaroz – located in Susques department, Jujuy province – Ganfeng is looking to consolidate its presence in Argentina, a country that is emerging as a significant global supplier of lithium. The transaction is expected to close in the second quarter of 2024 and is in line with the Chinese company’s efforts to secure strategic resources amid growing demand for lithium for electric vehicles.
Argentina, the world’s fourth-largest lithium producer, is expected to export up to $7 billion worth of lithium carbonate and lithium chloride by 2025, according to the Rosario Stock Exchange. It’s northwestern region is part of the so-called “lithium triangle” on the borders of Argentina, Bolivia and Chile, where more than 85% of the world’s lithium reserves are concentrated. Ganfeng is not the only Chinese company investing in lithium in Argentina, as other companies such as Tibet Summit Resources and Tsingshan have also made similar investments.
With the acquisition of the Pastos Grandes project, Ganfeng strengthens its role in the lithium supply chain and underscores Argentina’s strategic importance in the global production of this essential mineral for electromobility.