Lithea is owned by LSC Lithium, itself owned by Pluspetrol – the leading private oil and gas company in Latin America. Pluspetrol completed a takeover of LSC Lithium (for US$85M) in 2019. Lithea owns rights to lithium salt lakes in Pozuelos and Pastos Grandes in Argentina’s Salta province, having acquired 30,000ha in the Pozuelos Salar for a total of US$44M in 2017.

The announcement is the latest in a series of lithium deals in Argentina. Lithium Americas completed a US$400M acquisition of Millennial Lithium in January, in a deal which added the Pastos Grandes lithium brine project to its portfolio. Meanwhile, in December, Rio Tinto said it would buy the Rincon lithium project in for US$825M. Also, in February, Zijin Mining Group announced plans to invest US$380M to construct a lithium carbonate plant in Catamarca having purchased Canada’s Neo Lithium Corp, which operates the Tres Quebradas (3Q) project, the previous year.

Project Blue expects the international scramble for access to South American lithium to continue, although things will likely play out differently in each corner of the lithium triangle. While there is appetite and a supportive federal structure for investment in Argentina, across the border in Chile the Government continues to focus on the development of a legal framework to sell its concessions. Meanwhile in Bolivia, the Government postponed the selection of a partner to develop the country’s lithium resources in May with six firms still in the running (four from China, one from Russia and one from the USA).

For Ganfeng, the deal is its latest upstream expansion in Argentina. It already has exposure to the country’s lithium via its joint venture with Lithium Americas in the Cauchari project, its stake in the owner of the Cauchari-Olaroz project (Minera Exar), its 100% shareholding in the Mariana project, and its interest in the Sal de la Puna (SDLP) lithium brine project. Ganfeng also has assets outside of China in Australia, Ireland, Mali, and Mexico.

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