Highlights

  • Q3 lithium carbonate production reached approximately 8,300 tonnes.
  • New USD 130 million debt facility secured from Ganfeng Lithium Group.
  • PPG Scoping Study outlines pathway to large-scale, low-cost lithium production in Salta.

Lithium Argentina AG (NYSE:LAR) released its third-quarter 2025 results, reporting continued operational progress and strategic developments across its lithium projects in Argentina. The company also held a webcast with executives from Ganfeng Lithium Group Co., Ltd. to discuss both quarterly performance and the Pozuelos Pastos Grandes (PPG) Scoping Study.

Sam Pigott, Lithium Argentina’s President and CEO, stated:

“The third quarter demonstrated continued operational performance and the benefits of our ongoing initiatives to optimize production, enhance process efficiency and reduce long-term costs. We remain confident in exceeding the low-end of our 2025 targets.”

He added that production rates sustained around 90% of nameplate capacity, while optimization efforts remain ongoing. The CEO also highlighted a new six-year USD 130 million debt facility from Ganfeng, providing flexibility for the company’s capital structure and future planning.

During the quarter, lithium carbonate production totaled around 8,300 tonnes, bringing year-to-date output to about 24,000 tonnes as of September 30, 2025. This keeps the operation on track to meet or exceed the lower end of its full-year guidance of 30,000 to 35,000 tonnes.

Revenue for the third quarter stood at USD 58 million, with an average realized price of approximately USD 7,522 per tonne. Current market conditions indicate a higher realized price of around USD 9,200 per tonne, reflecting a recovery since mid-year.

PPG Project and Regional Expansion Plans

The recently completed PPG Scoping Study outlines a development path for up to 150,000 tonnes per annum (tpa) of lithium carbonate equivalent (LCE). The study estimates an after-tax NPV (8%) of USD 8.1 billion and an internal rate of return (IRR) of 33% based on a lithium carbonate price of USD 18,000 per tonne.

The PPG Project hosts an estimated 15.1 million tonnes of measured and indicated LCE resources, positioning it among the largest undeveloped lithium brine deposits globally. Operating cash costs are estimated at USD 5,027 per tonne, with initial Stage 1 capital requirements of around USD 1.1 billion, including contingencies.

Environmental approval for Stage 1 has been granted by the Government of Salta following a 14-month review. Upon completion of a new joint venture (New JV), Ganfeng will hold 67% and Lithium Argentina 33% of the PPG Project. Both partners are evaluating financing options and potential strategic collaborations.

Financial Position and Outlook

As of September 30, 2025, Lithium Argentina reported USD 64 million in cash and cash equivalents. Cauchari-Olaroz carried USD 231 million of net debt on a 100% basis. The company’s USD 130 million debt facility from Ganfeng, set to close in early 2026, is expected to improve liquidity and refinance existing obligations.

Additionally, the company is preparing applications under Argentina’s large investments incentive regime (RIGI) for both Cauchari Stage 2 and PPG, aimed at optimizing potential tax and fiscal benefits.