Lithium Argentina and Ganfeng Lithium have reported positive results from a scoping study for their integrated Pozuelos–Pastos Grandes (PPG) lithium brine project in Argentina’s Salta province, while also securing Stage 1 environmental approval from provincial authorities.
The PPG project consolidates three neighbouring brine assets owned by Lithium Argentina and Ganfeng into a single development platform, creating one of the world’s largest undeveloped lithium brine resources with a measured and indicated resource of 15.1-million tonnes of lithium carbonate equivalent (LCE).
The study outlines a 30-year project life with a production capacity of 150 000 t/y of LCE, developed in three 50 000 t/y stages.
Stage 1 development is estimated to cost $1.1-billion, with total capital expenditure over the project’s life of $3.3-billion. Operating costs are forecast at $5 027/t, with an all-in sustaining cost of $5 351/t.
At a lithium carbonate price of $18 000/t, the project delivers an after-tax NPV, using an 8% discount, of $8.1-billion and an internal rate of return (IRR) of 33%. Even at a conservative price of $12 000/t, the IRR remains strong at 21%.
The project will employ a hybrid solar evaporation and direct lithium extraction process aimed at improving efficiency and minimising freshwater use.
“Together with Ganfeng, we are building on the success of Cauchari-Olaroz to advance Argentina’s next major lithium operation,” said Lithium Argentina CEO Sam Pigott.
“PPG represents a continuation of our proven partnership – combining disciplined execution, technical excellence and next-generation processing technology designed to enhance efficiency and minimise environmental impact.”
Pigott said receiving environmental approval for Stage 1 after a 14-month review reaffirmed the partners’ commitment to sustainability and innovation.
“With strong support from the province of Salta and the federal government’s RIGI investment regime, PPG highlights our contribution to Argentina’s growing role in advancing a diversified and competitive global supply chain for lithium chemicals,” he added.
Under the new joint venture, Ganfeng will hold a 67% interest in PPG and Lithium Argentina 33%. The partners are advancing financing discussions that include debt, offtake and minority equity investment options, with the RIGI application targeted for the first half of 2026.
The PPG project combines Ganfeng’s processing expertise with Lithium Argentina’s in-country operational experience and builds on the partnership that delivered the successful Cauchari-Olaroz lithium project, one of Argentina’s flagship brine operations.