ASX-listed Argosy Minerals reported on Monday that detailed engineering had been completed for a 40 MW grid connection that would underpin initial production and future expansion of its Rincon lithium project in Argentina.

The power solution, developed with Salta Electricity Distribution Company EDESA, would see an 8.6 km, 33 kV medium-voltage transmission line linking the Rincon site to the national grid via a substation adjacent to the 208 MW Altiplano solar facility. Once built, the infrastructure is designed to supply up to 40 MW of power, sufficient to support Argosy’s planned 12 000 t/y lithium operation.

With engineering and feasibility work now finalised, the project is moving into a competitive tender process for construction of the transmission line and associated transformer station. Argosy said provisional cost estimates and delivery schedules would be refined through this process.

Access to grid power is expected to materially improve project economics by reducing reliance on diesel generation and enabling the integration of renewable energy through power purchase agreements with local providers. The company noted that energy availability remains a key barrier for many lithium developments in north-west Argentina.

Argosy MD Jerko Zuvela said securing grid access was an important step toward completing feasibility work and commercialising the project.

“Completing the detailed engineering works for the Medium Voltage Line (MVL) Project and securing strategic access to national grid power marks a significant milestone for the development of our 12 000 t/y Rincon liithium project and positive progress toward finalising the feasibility works,” Zuvela said.

“Completing the MVL project will provide a major cost-saving advantage, given access to energy is the key barrier to entry for many lithium projects, where such infrastructure and access to grid power is lacking in the NW region of Argentina.

“Being only about 8 km from such critical energy infrastructure beneficially positions Argosy for sustained growth and success to ultimately develop and successfully commercialise our Rincon project.”

Argosy added that the infrastructure programme was being coordinated alongside neighbouring developments, including Rio Tinto’s Rincon project, with parallel transmission lines envisaged to connect both operations to the Altiplano substation and the national grid. The company said the approach strengthened Rincon’s positioning as a low-carbon lithium asset aligned with Argentina’s renewable-energy transition.