On March 5, 2024, Lithium Americas (Argentina) Corp. (“Lithium Argentina”) and its subsidiaries executed a definitive agreement with Ganfeng Lithium Co. Ltd. to sell newly issued shares in its subsidiary, Proyecto Pastos Grandes S.A. (PGCo), for US$70 million (approximately C$95 million). This transaction granted Ganfeng Lithium approximately a 15% stake in PGCo, which held the Pastos Grandes lithium brine project in Salta, Argentina.

The deal was part of a strategic collaboration to develop the Pastos Grandes Basin alongside Ganfeng’s nearby Pozuelos-Pastos Grandes project. The companies explored integrating Ganfeng’s direct lithium extraction (DLE) technology with conventional solar evaporation methods. Proceeds from the sale strengthened Lithium Argentina's balance sheet and supported lithium development in Argentina. Offtake rights remained uncommitted, and Lithium Argentina sought new financing and customers for its global lithium supply chain.

Legal advisors for the transaction included Cassels Brock & Blackwell LLP, representing Lithium Argentina, and Gowling WLG, advising Ganfeng Lithium and its subsidiary. Cormark Securities Inc. provided a fairness opinion to Lithium Argentina’s board, confirming the financial fairness of the deal. Completion was expected by Q2 2024, subject to regulatory approvals from China.

Ganfeng retained the option to increase its stake to 50% with an additional US$330 million (approximately C$445 million) investment, bringing the total potential transaction value to US$400 million (approximately C$540 million).