🇦🇷 The Pozuelos-Pastos Grandes (PPG) lithium brine project in Salta Province, Argentina, has reached a significant milestone with the completion of its Scoping Study and the receipt of Stage 1 environmental approval from the Government of Salta. This joint venture between Lithium Argentina AG (LAR) and Ganfeng Lithium Group is poised to become one of the largest undeveloped lithium brine resources worldwide, highlighting Argentina’s expanding role in the global lithium industry.
The PPG project unites three lithium brine sites—Pozuelos, Pastos Grandes, and Sal de la Puna—within the Pozuelos and Pastos Grandes basins. Ganfeng Lithium Group holds a 67% stake, while Lithium Argentina AG owns 33%, with an anticipated project lifespan of 30 years. The measured and indicated resource totals an impressive 15.1 million tonnes of Lithium Carbonate Equivalent (LCE).
The Scoping Study, prepared in compliance with National Instrument 43-101 standards, outlines a phased production approach. Stage 1 targets an annual production capacity of 50,000 tonnes LCE, expanding to 150,000 tonnes LCE across three stages. Key financial metrics include an operating cash cost of $5,027 per tonne LCE and an all-in sustaining cost of $5,351 per tonne LCE. Initial capital expenditure for Stage 1 is estimated at $1.1 billion, with total project costs reaching $3.3 billion. Economic projections are robust, with an after-tax net present value (NPV) of $8.1 billion at $18,000 per tonne lithium carbonate and an internal rate of return (IRR) of 33% at the same price point.
Innovatively, the project employs a hybrid processing method combining solar evaporation and Direct Lithium Extraction (DLE), aimed at enhancing efficiency and minimizing freshwater consumption. The financing strategy involves a mix of debt, offtake agreements, and minority equity investments.
On November 7, 2025, after a thorough 14-month environmental review, the Salta Province’s Secretariat of Mining and Energy granted environmental approval for Stage 1. This endorsement underscores the project’s commitment to sustainability and advanced processing technologies, supported by both provincial authorities and the federal government’s RIGI investment regime.
Sam Pigott, President and CEO of Lithium Argentina AG, emphasized the strategic importance of PPG: “Together with Ganfeng, we are building on the success of Cauchari-Olaroz to advance Argentina’s next major lithium operation. The environmental approval reinforces our focus on sustainability and supports Argentina’s growing role in the global lithium chemicals supply chain, essential for electric mobility and large-scale energy storage.”
The PPG project not only signifies a major operational advancement but also presents substantial business implications. With its large-scale resource and favorable economics, it offers attractive investment opportunities and is poised to strengthen Argentina’s position in the competitive global lithium market. The project’s sustainable approach and governmental backing further enhance its appeal, promising positive impacts on the mining sector and regional economic development.
Source(s): https://www.juniorminingnetwork.com/junior-miner-news/press-releases/3295-tsx/lar/191090-lithium-argentina-reports-third-quarter-2025-results-and-results-of-ppg-scoping-study.html, https://www.globenewswire.com/news-release/2025/11/10/3184332/0/en/lithium-argentina-reports-third-quarter-2025-results-and-results-of-ppg-scoping-study.html, https://www.marketscreener.com/news/lithium-argentina-and-ganfeng-announced-ppg-scoping-study-results-and-stage-1-environmental-approval-ce7d5fd8d88ff62c
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