Ganfeng Lithium Expands in Argentina with New Plant in Salta
Photo: Ganfeng Lithium Latinoamérica.
This Wednesday, Argentina’s sixth lithium plant began operations in the province of Salta, exclusively owned by the Chinese company Ganfeng Lithium. It is the third plant to start production since 2024, despite a context of declining lithium prices, even as demand for the mineral has grown in recent years due to its use in batteries and electric vehicles.
The plant, inaugurated in General Güemes, processes lithium chloride from brine extracted at the Mariana project, located in the Llullaillaco Salt Flat. With a US$980 million investment (US$790 million for the project and US$190 million for a solar park), the facility has a production capacity of 20,000 tons per year. Construction took nearly three years, beginning in May 2022, when lithium prices peaked at US$80,000 per ton, compared to US$10,000 today.
Despite falling lithium prices, Ganfeng continues its expansion in Argentina, benefiting from the Regime of Incentives for Large Investments (RIGI), which enhances conditions for foreign investment in strategic sectors. The company already operates in Jujuy, as a partner of Lithium Americas in the Cauchari-Olaroz mine, and has projects in Pozuelos-Pastos Grandes (under construction) and Incahuasi-Arizaro (in advanced exploration). According to Wang Xiaoshen, president of Ganfeng Lithium Group, the company has invested US$3 billion in Argentina.
China is a key player in the global lithium industry, ranking as the world’s third-largest producer and the leading lithium refiner and importer. 46% of Argentina’s lithium exports go to China, home to major industrial giants such as BYD, the world’s largest electric vehicle manufacturer. During his visit to Argentina, Jason Luo, vice president of Ganfeng Lithium, reaffirmed the company’s commitment to local development.
Before the plant’s inauguration in Salta, executives from Ganfeng and Lithium Americas met with President Javier Milei at Casa Rosada, strengthening government support for foreign investment in the mining sector.
The previous lithium plant inauguration in Argentina occurred in October 2024, when Posco, the South Korean multinational, launched its plant in General Güemes, right next to Ganfeng’s facility. Unlike the Chinese company, Posco produces lithium hydroxide, a key compound for battery manufacturing.
In July 2024, Eramine Sudamericana, a partnership between French company Eramet and Chinese firm Tsingshan, started operations at the Centenario Ratones project. Later, Eramet acquired Tsingshan’s stake for US$700 million.
The lithium market has seen major mergers and acquisitions. One of the largest deals in the sector was Australian mining giant Rio Tinto’s acquisition of Arcadium Lithium, Argentina’s largest lithium producer, for US$6.7 billion.
In 2024, Argentina increased its lithium production by 54%, reaching 70,000 tons of lithium carbonate equivalent. According to Aleph Energy and the Argentine Chamber of Mining Entrepreneurs (CAEM), production could rise by 70% this year, surpassing 126,000 tons.
Despite industry expansion and new projects entering production, market analysts do not expect a significant lithium price recovery in 2025. However, the continued increase in supply and Argentina’s growing role as a key player in the sector reflect the strong interest from Chinese and global companies in lithium development in the country.
Main Source:
China suma protagonismo en el litio argentino tras inaugurar en Salta la planta de Ganfeng – Bloomberg
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China Ganfeng Lithium inaugura planta de producción de litio en Argentina – Reuters