Lithium Argentina said this week it has closed a $180 million investment from China’s Ganfeng Lithium, the latest Chinese capital to flow into Argentina’s lithium sector even as the battery-metals market stays soft.
The investment takes the form of a six-year unsecured convertible note (a loan that can be converted into shares) carrying a 4% annual coupon, convertible into Lithium Argentina shares at $12.50 apiece. The company said the proceeds will go toward repaying $259 million in convertible notes coming due in January 2027, with the remainder, combined with existing cash, supporting a second-stage expansion at the Cauchari-Olaroz lithium brine project in Jujuy province and the newly consolidated Pozuelos-Pastos Grandes joint venture.
“That combination gives us the flexibility to advance Stage 2 at Cauchari-Olaroz and support PPG in a disciplined, phased approach,” said Lithium Argentina CEO Sam Pigott.
Ganfeng already holds about 9.6% of Lithium Argentina’s outstanding shares. If it converts the note in full, it would receive 14.4 million additional shares, raising its stake to roughly 16.1% on a fully diluted basis.
The government has leaned on foreign direct investment, including through RIGI, its investment-incentive regime, to offset a soft global lithium price that has squeezed producers’ margins since 2023.