China’s largest lithium producer, Ganfeng Lithium, has entered into a strategic partnership with Lithium Argentina to merge three adjacent brine deposits in Salta province. The joint venture aims to deliver 150,000 tonnes of lithium carbonate equivalent (LCE) each year, placing it among South America’s biggest lithium projects.

The announcement follows the closure of China’s Jianxiawo mine—which previously accounted for around 6% of global supply—sending prices higher and intensifying the need for alternative sources. The new alliance is designed to secure long-term access to critical minerals essential for the global shift to clean energy.

Strategic Benefits

Ganfeng brings deep financial resources and advanced extraction technologies, while Lithium Argentina contributes expertise in high-altitude brine operations. Together, they aim to create a more efficient operation capable of withstanding the harsh environment of the Andes.

Why Salta Province Matters

Located in the “Lithium Triangle” shared by Argentina, Bolivia, and Chile, Salta hosts some of the world’s richest lithium brine reserves. Favourable conditions such as intense solar radiation and low rainfall make solar evaporation cost-effective and reduce reliance on energy-intensive hard rock mining.

Market Implications

With global lithium demand surging due to electric vehicle adoption, the venture’s projected output could ease price volatility and stabilise supply chains. The agreement also strengthens Ganfeng’s geographic diversification, reducing its reliance on Chinese mines that face stricter environmental regulations and permitting challenges.

Economic Impact for Argentina

The project is expected to create jobs, improve local infrastructure, and increase tax revenues, while integrating Argentina further into the global battery supply chain. There are also opportunities for downstream processing industries to develop domestically.

Environmental Considerations

Operating in an arid, high-altitude region brings water management challenges. The partnership plans to incorporate recycling systems, direct lithium extraction technology, and renewable energy to minimise environmental impact.

Global Lithium Race

Chinese companies are increasingly investing abroad to secure stable raw material supplies for battery production, a move aligned with China’s broader strategy to safeguard critical mineral resources amid rising geopolitical competition.

As the venture develops, it could become a defining project in the lithium sector; shaping prices, influencing supply security, and reinforcing South America’s role as a cornerstone of the energy transition.

Written By: 

*Dr Iqbal Survé

Past chairman of the BRICS Business Council and co-chairman of the BRICS Media Forum and the BRNN

*Cole Jackson

Lead Associate at BRICS+ Consulting Group 

Chinese & South American Specialist

**The Views expressed do not necessarily reflect the views of Independent Media or IOL.

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