Lithium Americas targets major project in Argentina

Vancouver-based Lithium Americas is targeting a large-scale lithium project in the Salar Pastos Grandes in Argentina through an agreement to acquire the shares it does not already own of Arena Minerals for the equivalent of around US$227mn on a 100% basis.

Lithium Americas currently holds 19.9% of Arena, while the latter’s shareholders would end up with 5.7% of the merged company, according to statements from the firms.

The deal is subject to the approval of Arena shareholders and security holders, which is expected in 1Q23, the statements said.

The agreement would allow Lithium Americas to combine its 100%-owned Pastos Grandes project with Sal de la Puna, which Arena shares with Ganfeng Lithium on a 65:35 basis.

The projects in Salta province would benefit from synergies in development and costs, covering an area of 23,619ha, the companies say.

A Lithium Americas presentation this month outlines a US$30mn development plan to advance Pastos Grandes towards a construction decision, expected for 2H23.

Shareholders of Toronto-based Arena, meanwhile, would have exposure to the Caucharí-Olaroz project in Jujuy province, of which Lithium Americas owns 44.8% in partnership with Ganfeng Lithium (46.7%) and the provincial firm JEMSE (8.5%).

Start-up and production at Caucharí-Olaroz is scheduled for 1H23, targeting 40,000t/y of lithium carbonate for 20 years.

With the new structure, Lithium Americas is preparing to strengthen its lithium supply chain and take advantage of the boom in demand for lithium batteries for electric vehicles, which is forecast to increase by more than 1,200% by 2040, according to its presentation.