Ganfeng Lithium Co. and its Swiss-based partner Lithium Argentina AG are courting a third strategic investor for their sprawling Pozuelos-Pastos Grandes (PPGS) lithium brine project in northern Argentina, as the pair advance one of the biggest undeveloped assets in South America’s mineral-rich “Lithium Triangle,” the head of Lithium Argentina said Thursday.
Ignacio Celorrio, president of Lithium Argentina, confirmed the plan to Reuters, saying a final partner selection will be finalized in the coming months. He declined to name potential candidates or detail proposed ownership structures. The project, located in Salta province, carries total capital expenditure of more than $3 billion across three construction phases and is set to reach 150,000 tonnes of lithium carbonate equivalent (LCE) annually at full capacity — placing it among the region’s largest lithium operations.
Formed by merging three adjacent salt flats — Pozuelos, Pastos Grandes and Puna — the PPGS deposit holds combined measured and indicated lithium resources of 15.07 million tonnes LCE, ranking it among the world’s largest untapped brine lithium assets, according to prior filings from Ganfeng’s international arm. The first phase of development, which has already secured environmental clearance from Salta provincial authorities, will deliver 50,000 tonnes of annual LCE output. The site will deploy advanced direct lithium extraction (DLE) technology, targeting an average operating cost of roughly $5,027 per tonne, a highly competitive position against both global brine and hard-rock producers.
In March, Ganfeng applied to enroll PPGS in Argentina’s Large Investment Incentive Regime (RIGI), the government’s flagship program to draw large-scale industrial and mining capital. For projects exceeding $200 million in investment, RIGI grants 30 years of regulatory stability, including a reduced corporate income tax rate of 25% — down from the standard 35% — phased dividend tax relief, import duty exemptions on capital equipment, and accelerated fixed-asset depreciation.
PPGS marks the second major lithium venture Ganfeng has built out with Lithium Argentina in Argentina’s northwest highlands. The pair, alongside state-owned Jujuy Mining and Energy Society (JEMSE), already operate the Cauchari-Olaroz project in neighboring Jujuy province, which came online in 2023 with 40,000 tonnes of annual LCE capacity. A $1.2 billion expansion of Cauchari-Olaroz, adding 45,000 tonnes per year of output, was granted RIGI status in May, locking in national-level policy support for both of Ganfeng’s flagship Argentine assets.
The search for a third partner comes against a backdrop of renewed volatility in global lithium supply. Temporary production halts at several domestic mines in China — triggered by permit adjustments and tightening regulatory oversight — have removed roughly 6% of worldwide lithium output in recent months, lifting expectations for a price rebound after a prolonged market slump.
For Ganfeng, China’s largest lithium producer, bringing in an outside investor serves dual strategic goals. It spreads the financial burden of the $3 billion development program to accelerate construction timelines, while diversifying the company’s resource base away from its home market, where domestic lithium operations face mounting environmental and permitting constraints. Industry analysts note the process could also open avenues to tie in downstream battery makers or industrial capital, further entrenching Ganfeng’s position across the global lithium value chain.
Argentina sits alongside Chile and Bolivia in the so-called Lithium Triangle, a region that holds more than 58% of the world’s lithium resources. As the world’s fourth-biggest lithium exporter, Argentina currently has six producing lithium mines, with high-altitude brine operations prized for their low-cost production model leveraging natural solar evaporation.
The country’s mining sector is poised for rapid expansion in the coming years. The Argentine Chamber of Mining Companies (CAEM) projects total mining exports will climb to $9 billion in 2026 from $6.073 billion in 2025, with lithium set to drive the bulk of that growth. Deepening investment from Chinese players like Ganfeng is steadily reshaping the region’s mining landscape — and with it, the long-term supply and pricing dynamics of the metal at the heart of the global energy transition.
