The Board of Directors of Lithium Americas has unanimously approved a restructuring that will result in the separation of its North American and Argentine business units into two individual companies.

The separation will create an Argentina-focused lithium company, Lithium Argentina, and a North America-focused lithium company, Lithium Americas (NewCo).

Lithium Argentina will own the company’s stake in the Argentinan lithium assets, including the 44.8% of Caucharí-Olaroz, 100% of Pastos Grandes and 65% of Sal de la Puna projects.

Lithium Americas (NewCo) will fully own the Thacker Pass lithium project in Humboldt County, Nevada, along with investments in Green Technology Metals and Ascend Elements.

Lithium Americas president and CEO Jonathan Evans said: “With this approval by the Board of Directors, we are excited to clear a key milestone in moving forward to separate Lithium Americas into two distinct leading lithium companies.

“We look forward to the value that can be created for shareholders through Lithium Americas (NewCo)’s unique position and the development of one of the largest lithium resources in the U.S., as well as the value generated through Lithium Argentina’s near-term production portfolio with a significant growth pipeline from two high-quality projects.”

The completion of the transaction is subject to customary conditions and approvals, including the Canada Revenue Agency ruling, third-party approvals, court, tax, stock exchange and regulatory approvals and shareholder approval.

Upon completion, Lithium Americas director, president and CEO Jonathan Evans will be appointed as president and CEO of Lithium Americas (NewCo).

Lithium Americas EVP and CFO Pablo Mercado will continue in the same position at Lithium Americas (NewCo).

Its executive vice chairman John Kanellitsas will be appointed as Interim President and CEO, and the finance VP Alex Shulga will be appointed as EVP and CFO of Lithium Argentina.

The Canadian mining company said that its separation will enhance the long-term prospects for both the separated business units and provide several benefits.

Lithium Argentina can ramp up the further expansion of Caucharí-Olarozm and advance construction decisions for Pastos Grandes and the potential upside at Sal de la Puna.

Lithium Americas (NewCo) can start construction and production from Phase 1 of Thacker Pass, along with planning and execution of Phase 2 and beyond.