Lithium Americas and its joint venture partner Ganfeng Lithium have started development planning for the second stage of the Caucharí-Olaroz lithium project in Argentina.
The second stage expansion will aim to add at least another 20,000 tonnes per annum (tpa) of lithium carbonate equivalent (LCE) production capacity to the project.
Currently, construction is in progress for the initial 40,000tpa stage 1 operation at the Caucharí-Olaroz lithium project in Jujuy province. The partners estimate a capital expenditure of $641m for the first stage of the project.
Lithium Americas said that the partners are on track to achieve first production in mid-2022, with currently more than 1,000 workers on site.
The second stage of the project is targeted to begin production in 2025 with construction to begin in the latter half of next year.
Lithium Americas chairman George Ireland said: “Caucharí-Olaroz is on track to become the largest new lithium brine operation in over 20 years.
“With construction for Stage 1 expected to be complete within the next year, together with Ganfeng Lithium, we are beginning to plan our next phase of growth in Argentina.”
The company said that infrastructure additions will be made to the site to support long-term expansions beyond the second stage.
Lithium Americas expects to furnish further details on stage 2 of the Caucharí-Olaroz lithium project by the fourth quarter of this year, which will be followed by an updated feasibility study next year.
The Canadian miner and Ganfeng Lithium had finalised their joint venture – Minera Exar for the Argentine project last August. Lithium Americas has a 49% stake in the lithium project, while its Chinese partner holds the remaining 51% stake.
The Cauchari-Olaroz mine is estimated to have brine reserves of 1.1 billion cubic metres, grading 607mg/l lithium. The project is estimated to have 682,920t of lithium metal and 3.6 million tonnes of lithium carbonate equivalent in proven and probable reserves.