(Yicai) Aug. 13 -- China's Ganfeng Lithium Group will consolidate its lithium assets in Argentina’s Pozuelos-Pastos Grandes Salt Lake Basin with partner Lithium Argentina and extend a USD130 million loan to the latter.

The two firms will merge ownership of the Pastos Grandes high-altitude salt flat, the adjacent Pozuelos-Pastos Grandes area, and other salt lake mining sites in Argentina’s Puna Plateau. These assets, either wholly owned or jointly held, will be transferred to Millennial Lithium Corp, a subsidiary of Lithium Argentina, the Xinyu-based battery materials giant said yesterday.

This marks a strategic move by Ganfeng, one of the world’s largest lithium producers, which has operated in Argentina for over a decade. Alongside Bolivia and Chile, Argentina forms part of the “Lithium Triangle,” which holds some of the world’s biggest reserves of the metal.

Following the reorganization, Ganfeng's wholly owned unit, GFL International, will hold a 67 percent stake in Millennial, with Lithium Argentina owning the remaining 33 percent. Lithium Argentina will use its equity in the joint venture as collateral to secure a USD130 million loan from Ganfeng.

The JV plans to build a lithium salt separation production line across the Pozuelos and Pastos Grandes salt lakes. The project will be developed in three phases and is expected to reach an annual capacity of 150,000 tons of lithium carbonate equivalent upon completion.

Ganfeng said consolidating the assets into a unified platform will help establish a large-scale, efficient, and sustainable supply chain for lithium salts, key chemicals used in electric vehicle batteries. The move will enhance resource use and help secure Ganfeng's lithium needs, the firm added.

Ganfeng also holds an indirect stake in Lithium Argentina. Its subsidiary GFL owns nearly 10 percent of the Swiss-registered lithium carbonate producer. The two firms have previously collaborated on Argentina’s Cauchari-Olaroz salt lake, which began lithium production in 2023.

Prior to the latest deal, Ganfeng fully owned development rights to the Pozuelos-Pastos Grandes salt lake, while the other salt lakes were under joint ownership, with Lithium Argentina previously holding a majority stake.

Despite the optimized asset structure, Ganfeng’s share price [SHE: 002460] fell 1.3 percent to close at CNY38.93 (USD5.40) today.

Editor: Emmi Laine