Lithium Argentina has closed a $180 million strategic investment from Ganfeng Lithium Group, strengthening its balance sheet as the company advances the Cauchari-Olaroz lithium operation and Pozuelos-Pastos Grandes project in Argentina.
The investment was structured as a six-year unsecured convertible note carrying a 4% annual coupon and convertible into Lithium Argentina shares at $12.50 per share.
Lithium Argentina plans to combine the financing proceeds with existing cash to repay in full $259 million of convertible notes due in January 2027.
Management said the refinancing will lower net debt, extend its maturity profile and reduce the company’s cost of capital, giving it greater flexibility to fund development while limiting equity dilution.
The company plans to use that improved financial position to advance Stage 2 of Cauchari-Olaroz and support development of Pozuelos-Pastos Grandes, or PPG, through a phased capital strategy.
Lithium Argentina’s separate joint venture consolidation with Ganfeng involving PPG remains targeted for completion by the end of September 2026.
Ganfeng currently owns approximately 9.6% of Lithium Argentina’s outstanding common shares.
If the new convertible note were fully converted, Ganfeng would receive 14.4 million additional shares and its ownership would increase to approximately 16.1% on a fully diluted basis.
Lithium Argentina produces lithium carbonate primarily for lithium-ion batteries and electric vehicles. In partnership with Ganfeng, it operates the Cauchari-Olaroz lithium brine operation in Argentina’s Jujuy province and is advancing PPG in Salta province.
KEY QUOTES:
“Lithium Argentina now has a materially stronger balance sheet, with lower net debt, a six-year maturity profile and a low cost of capital.”
“That combination gives us the flexibility to advance Stage 2 at Cauchari-Olaroz and support PPG in a disciplined, phased approach that limits equity dilution and unlocks the value of both assets for our shareholders.”
Sam Pigott, CEO of Lithium Argentina
