Lithium Argentina and Ganfeng Release PPG Scoping Study, Securing Stage 1 Environmental Approval
The PPG Project is located in the Puna region of Salta Province, Argentina, approximately 600 km from the port of Antofagasta, Chile. Photo Credit: Lithium Argentina
Key Points
- Lithium Argentina (TSX/NYSE: LAR) and Ganfeng Lithium released a scoping study for the Pozuelos-Pastos Grandes (PPG) lithium brine project in Salta Province, Argentina on November 10, 2025.
- PPG targets 150,000 tonnes per annum (tpa) of lithium carbonate equivalent (LCE) across three 50,000 tpa stages, with a 30-year project life and a total capital cost of $3.3 billion.
- At a base case lithium carbonate price of $18,000/t, the project returns an after-tax NPV of $8.1 billion and an IRR of 32.7%, with a 7-year payback period.
- The Salta government issued Stage 1 environmental approval (DIA) on November 7, 2025, following a 14-month review. A RIGI application is targeted for H1 2026.
- Ganfeng will hold 67% of the joint venture with Lithium Argentina holding 33%, modelled on the partners’ existing Cauchari-Olaroz operation.
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Scoping Study Results
Lithium Argentina AG and Ganfeng Lithium Group Co., Ltd released the results of the Pozuelos-Pastos Grandes Scoping Study on November 10, 2025, outlining one of the most significant undeveloped lithium brine projects in the world.
The study, prepared by independent qualified persons at Golder Associates and Atacama Waters in accordance with NI 43-101 and SEC Regulation S-K Subpart 1300 standards, outlines a phased, 30-year development producing up to 150,000 tpa of LCE. Stage 1 alone targets 50,000 tpa of LCE at a capital cost of $1.1 billion, inclusive of a 16% contingency.
The PPG resource stands at 15.1 Mt LCE in the measured and indicated categories across the consolidated Pozuelos and Pastos Grandes basins, placing it among the largest undeveloped lithium brine resources globally.
| Key Metric | Stage 1 | Full Project |
|---|---|---|
| Annual LCE Production | 50,000 tpa | 150,000 tpa |
| Capital Cost | $1.1 billion | $3.3 billion |
| Operating Cost ($/t LCE) | $5,344/t | $5,027/t |
| AISC ($/t LCE) | — | $5,351/t |
| Project Life | — | 30 years |
Operating costs at full production are estimated at $5,027/t LCE with an all-in sustaining cost (AISC) of $5,351/t over the life of the project. The two largest cost components are energy at $1,481/t and reagents at $1,444/t, reflecting the hybrid processing approach employed at PPG.
Project Details & Technology
PPG consolidates three previously distinct lithium projects — Ganfeng’s wholly-owned Pozuelos-Pastos Grandes project together with Lithium Argentina’s Pastos Grandes project (85%-owned) and the Sal de la Puna project (65%-owned) — into a single development platform in the Puna (Altiplano) region of northwestern Argentina.
The project sits approximately 600 km from the Port of Antofagasta in Chile, the intended export point for finished lithium products. The two salars — Pozuelos and Pastos Grandes — are treated as a single production system in the Scoping Study, reflecting their shared geological connection and allowing for combined infrastructure and operational efficiencies.
Direct Lithium Extraction (DLE)
DLE is a technology that selectively extracts lithium from brine using sorbents or solvents, bypassing the lengthy solar evaporation step used in conventional lithium brine processing. At PPG, a hybrid approach is used — brine is first pre-concentrated in solar evaporation ponds, then lithium is selectively recovered via solvent extraction (SX) before final purification and lithium carbonate production. This is designed to reduce freshwater consumption, lower reagent use, and improve product consistency versus fully conventional processes.
PPG’s primary product will be lithium carbonate, though the project design preserves flexibility to produce lithium hydroxide and lithium chloride depending on customer requirements and market conditions. Under the joint venture structure, Ganfeng will act as lead technical partner and operator, while Lithium Argentina provides in-country expertise, permitting support and stakeholder engagement — mirroring the roles the two companies play at Cauchari-Olaroz.
The Salta Secretariat of Mining and Energy issued the Environmental Impact Statement (Declaración de Impacto Ambiental, or DIA) for Stage 1 on November 7, 2025, closing a 14-month regulatory review of the project and its processing technology.
“Together with Ganfeng, we are building on the success of Cauchari-Olaroz to advance Argentina’s next major lithium operation. PPG represents a continuation of our proven partnership — combining disciplined execution, technical excellence and next-generation processing technology designed to enhance efficiency and minimize environmental impact.”
— Sam Pigott, President and CEO, Lithium Argentina AG
Economics & Valuation
At the base case lithium carbonate price of $18,000/t, PPG generates an after-tax NPV at an 8% discount rate of $8.1 billion and an IRR of 32.7%, with an estimated payback period of 7 years. The project also demonstrates resilience at lower price assumptions — at $12,000/t, the after-tax IRR remains at 21.1%, indicating a competitive cost position even in a depressed market environment.
| Li₂CO₃ Price | After-Tax NPV₈% | After-Tax NPV₁₀% | After-Tax IRR | Payback |
|---|---|---|---|---|
| $12,000/t | $3.6B | $2.4B | 21.1% | 10.0 yrs |
| $16,000/t | $6.6B | $4.6B | 29.1% | 7.8 yrs |
| $18,000/t (Base) | $8.1B | $5.8B | 32.7% | 7.0 yrs |
| $20,000/t | $9.6B | $6.9B | 36.1% | 6.7 yrs |
The economics incorporate assumed access to Argentina’s RIGI investment incentive framework. RIGI is a government program that offers stable, long-term tax, regulatory and foreign exchange benefits to large-scale investors, including a reduced 25% corporate income tax rate (vs. the general 35% rate), export duty relief after a qualifying period, and accelerated tax depreciation.
RIGI (Régimen de Incentivo para Grandes Inversiones)
RIGI is an Argentine government incentive framework introduced to attract large-scale foreign investment. For the PPG Project, inclusion of RIGI assumptions in the base case model is estimated to lift post-tax NPV by approximately $0.9 billion and improve the IRR by 7.6%. The PPG joint venture plans to submit a RIGI application in H1 2026, though eligibility remains subject to regulatory approval.
Total capital intensity across the full 150,000 tpa project is estimated at approximately $21,900 per tonne of annual LCE, with Stage 1 capital intensity at approximately $22,000 per tonne. The sustaining capital requirement for the life of project averages approximately $324/t LCE.
It is worth noting that Salta provincial royalties are not included in the AISC figure and represent an additional cost of $217–$463/t depending on the prevailing lithium carbonate price ($12,000–$20,000/t range). At the $18,000/t base case, this adds roughly $300–$350/t on top of the stated $5,351/t AISC.
Next Steps
With Stage 1 environmental approval in hand, Lithium Argentina and Ganfeng are now advancing the RIGI application, which is targeted for submission in H1 2026. A full NI 43-101 compliant technical report and Technical Report Summary (TRS) under SEC Regulation S-K Subpart 1300 are expected to be filed within 45 days of the November 10, 2025 press release.
Financing for Stage 1 is being jointly advanced by the two partners, with options under consideration including project debt, offtake agreements and minority equity investments. The companies are also continuing to integrate the Pozuelos and Pastos Grandes resource estimates into a unified hydrological model, which will be used to support further technical work ahead of Stage 1 development.
Definitive joint venture agreements are being finalised, subject to customary board and regulatory approvals. Upon closing, Ganfeng will hold 67% and Lithium Argentina 33% of PPG, with ownership determined by resources, capital contributions and technology inputs.