Currently, Lithea owns rights to two lithium salt lakes that are located in the Salta province in the South American country
Argentina-focused miner Lithea to be acquired by Ganfeng Lithium. (Credit: Ganfeng Lithium Co.,Ltd.)
Ganfeng Lithium, a China-based lithium compounds producer, has agreed to acquire Lithea, an Argentina-focused mining firm, in a deal worth up to $962m.
The deal comes amid the Chinese firm’s pursuit of gaining access to more resources for producing critical battery metals, reported Reuters. It is being executed by Ganfeng Lithium’s subsidiary GFL International.
Currently, Lithea holds rights to two lithium salt lakes that are located in the Salta province. The lithium salt lake assets are Pozuelos and Pastos Grandes.
The Pozuelos prjects spans nearly 21,324ha. It is situated 230km west of Salta City, and 150km east of the Chilean border.
The two projects could produce lithium carbonate, which is said to be an important material for electric vehicle (EV) batteries.
In a stock exchange statement, Ganfeng Lithium said that the acquisition will bolster the layout of its upstream lithium resources as well as its resource self-sufficiency.
In Argentina, Ganfeng Lithium already has a footprint, through a stake of 46.67% in Minera Exar. The latter is the owner of the Cauchari-Olaroz lithium brine project in Jujuy province.
Lithea’s owner is LSC Lithium, which is owned by oil and gas mining company Pluspetrol Resource.
A team from law firm Mayer Brown team represented LSC Lithium in connection with the deal.
The deal is subject to receipt of relevant regulatory approvals.