Dual-listed Lithium Argentina said on Tuesday it would combine its Pastos Grandes and Sal de la Puna projects in Argentina’s Salta province with Ganfeng Lithium Group’s wholly owned Pozuelos-Pastos Grandes asset to create a large-scale brine operation targeting up to 150 000 t/y of lithium carbonate equivalent (LCE).

Under a framework agreement, Ganfeng will own 67% of the new joint venture (JV) and Lithium Argentina 33%, with stakes based on resources, capital contributions and technology inputs. The partners plan to close the deal by the first quarter of 2026.

“This transaction builds on our successful partnership with Ganfeng at Cauchari-Olaroz, Argentina’s largest lithium operation,” said Lithium Argentina CEO Sam Pigott. “With this transformative step forward, we are increasing our ownership into the Pozuelos basin and aligning our interests around a substantially larger-scale operation. The new JV will provide access to advanced technologies, increased financial flexibility and meaningful operating synergies. It represents an important milestone in our strategy to develop a diversified, scalable and sustainable global lithium supply chain while strengthening our balance sheet and creating lasting value for our shareholders.”

The combined project, known as PPG, will use a hybrid of direct lithium extraction (DLE) and solar evaporation, with a feasibility study due by year-end to support an application under Argentina’s Incentive Regime for Large Investments in the first half of 2026.

Ganfeng will also provide Lithium Argentina with a six-year $130-million debt facility at secured overnight financing rate plus 2.5% to refinance corporate debt and fund development. The loan will be secured by Lithium Argentina’s equity in PPG and will allow Ganfeng to take up to 50% of Lithium Argentina’s offtake from the initial development phase, capped at 6 000 t/y, at market prices.

The companies have invested about $1.8-billion in acquisition and development across the combined assets to date.