China’s biggest lithium compounds producer Ganfeng Lithium Co. Limited said on Monday that it will buy Argentina-focused Lithea Inc for upto USD 962 million as it seeks to secure access to more resources for production of key battery metals. The purchase is still subject to approval from Chinese authorities.
Lithea is owned by LSC Lithium BV, whose ultimate governing company is Pluspetrol Resource Corp. BV, and has Salt Lake assets at Pozuelos and Pastos Grandes to the west of Argentina’s mineral-rich Salta province. Its opening phase of production is projected to have annual capacity of 30,000 tons of lithium carbonate.
Argentina holds the world’s major pipeline of lithium projects and 19 million metric tonnes of resources that haven’t yet been tapped.
The acquisition emanates amid a dash to secure resources as a demand for the metal soars on expectations of swift development in the demand for electric vehicles.
Lithium, a key ingredient for electric-car batteries, gained nearly 500 percent in value in the previous year, advancing revenue for the producers.
Rio Tinto, Zijin Mining are amongst top investors in Argentina
Chinese and US companies are both involved in bidding for Argentina’s resources, while Rio Tinto Group and Zijin Mining Group Co. are streaming more than a billion dollars into the country.
In December 2021, Rio Tinto said that it would buy the Rincon project in Argentina’s Salta province for USD825 million as the global miner builds its battery materials business.
According to data from the U.S. Geological Survey (USGS), global Lithium production, in the year 2021, surged 21 percent powered by spiking demand for industry-standard li-ion batteries.
Argentina, part of the self-styled mining triangle, has been trying to attract more investors with new mining infrastructure and tax cuts.
About Ganfeng Lithium Group
Ganfeng Group covers a wide strip of the li-ion battery supply chain, from resource development, processing and refining to battery manufacturing to battery recycling. The Company’s products are extensively used in electric vehicles, chemicals, pharmaceuticals, energy storage and 3C products. The Group’s resources are located across the world and it is the only company in the industry that has the commercial scale machinery to extract lithium from brine, ore and recycled materials. The group’s compound capacity ranks third globally and first in China, and is the world’s largest lithium metal manufacturer. The Group has complete battery manufacturing and recycling technology, providing value-added and sustainable solutions to battery makers and electric vehicle manufacturers.
About Lithea
Lithea is owned by LSC Lithium BV, whose ultimate governing company is Pluspetrol Resource Corp. BV.
LitheA’s group adds another 30,000 hectares to LSC’s Argentina exploration portfolio, fetching the Company’s portfolio to 15 properties adding approximately 300,000 hectares. Lithea’s major asset is its Salar de Pozuelos tenements – the Pozuelos Property situated in the Province of Salta, Argentina. Since 2008, The Pozuelos Property covers nearly 99 percent of the surface extent of the Salar and has been subject to extensive exploration by Lithea. LSC Lithium has been funding Lithea during the option period in order to promote the exploration program at the Pozuelos Property prior to the purchase.