EXAR Commits $40 Million to Expand Argentina’s Leading Lithium Plant

EXAR

Joint Venture to Pilot Direct Lithium Extraction at Cauchari-Olaroz for Higher Efficiency and Sustainability

EXAR to Introduce DLE Technology at Cauchari-Olaroz

EXAR, a joint venture formed by Lithium Argentina, Ganfeng Lithium, and Argentina’s state-owned JEMSE, has announced a $40 million expansion at its Cauchari-Olaroz lithium facility. This move will pilot Direct Lithium Extraction (DLE) technology to enhance recovery rates and reduce processing time.

DLE can shorten lithium brine processing from 12 months to just one week. The pilot plant, designed to produce 5,000 tonnes per year, will test the method before full-scale implementation. Although EXAR has not set a construction timeline, the company emphasized its focus on efficiency and sustainability.

Cauchari-Olaroz Leads Argentina’s Lithium Output

In 2024, EXAR became Argentina’s top lithium carbonate producer, delivering 25,400 tonnes. The company forecasts 2025 production to rise between 30,000 and 35,000 tonnes at Cauchari-Olaroz, already the country’s largest lithium operation.

By piloting DLE at this critical facility, EXAR aims to stay ahead in the race to modernize lithium extraction methods. The approach supports Argentina’s broader push to boost domestic processing and minimize environmental impact.

Strategic Partnership Backs Innovation and Growth

The EXAR partnership brings together global expertise and local access. Ganfeng Lithium contributes technical know-how from China, Lithium Argentina offers Swiss-based project oversight, and JEMSE ensures alignment with national development goals.

As demand for battery-grade lithium carbonate surges worldwide, EXAR’s investment could establish Argentina as a leading supplier of sustainably sourced lithium.

Lithium Argentina Cauchari-Olaroz expansion moves ahead despite 3Q loss

Cauchari-Olaroz

Lithium Argentina Cauchari-Olaroz expansion remains firmly on track even as the company posts a 3Q net loss. The flagship brine project delivered 8,300t LCE in the quarter and keeps guidance of around 32,000t for 2025. However, currency impacts and legacy financing costs pushed Lithium Argentina to a $64.5mn loss, underlining the financial volatility around the Cauchari-Olaroz expansion.

Strong production, weak pricing pressure margins

Cauchari-Olaroz remains one of Argentina’s largest single lithium projects and is running at about 80pc of capacity. The project has produced 24,000t LCE over January-September, 22pc higher than a year earlier, confirming the operational strength behind the Lithium Argentina Cauchari-Olaroz expansion. However, average realized prices of $7,522/t for lithium carbonate limit cash flow compared with the 2022 price peak.

Lithium Argentina holds a 44.8pc economic interest in the project via its Minera Exar joint venture with Ganfeng Lithium. As a result, its attributable revenue from Cauchari-Olaroz reached only about $26.4mn in the third quarter. Currency fluctuations and the conversion of earlier loans to Minera Exar into equity added more than $78mn in accounting losses, overshadowing solid operating metrics from the Cauchari-Olaroz expansion.

Rigi incentives key for PPG and next growth wave

The company’s growth strategy now hinges on securing Argentina’s Rigi incentives for large investments. LAR and Ganfeng plan to use the regime to support both the Lithium Argentina Cauchari-Olaroz expansion and the much larger Pozuelos-Pastos Grandes (PPG) cluster. PPG could reach 150,000t/yr LCE at full ramp-up, making it one of the biggest planned lithium brine platforms in the country.

The Rigi framework offers reduced taxes and royalties, streamlined customs, accounting flexibility and 40-year legal stability. Therefore, successful approval would materially improve project economics and risk perception for lenders and strategic offtakers. LAR aims to file a Rigi application for PPG in the first half of 2026, while a separate Rigi process for the Cauchari-Olaroz expansion is also in preparation.

The Metalnomist Commentary

Lithium Argentina is demonstrating that scale and uptime at Cauchari-Olaroz can offset some of the pain from lower prices and FX swings. The crucial question is how quickly Rigi incentives are granted, because these terms will shape funding costs for both Cauchari-Olaroz and PPG. For investors and cathode buyers, Argentina’s policy execution will help determine whether this emerging lithium hub meets its aggressive capacity targets.

Lithium Argentina and Ganfeng to Develop Brine Lithium Projects

Ganfeng Lithium

New Agreement Targets Pozuelos-Pastos Grandes Basin Expansion

Lithium Argentina and Ganfeng Lithium signed a letter of intent to jointly develop lithium resources in Argentina’s Pozuelos-Pastos Grandes basin. The collaboration involves three projects: Pastos Grande, Sal de la Puna, and the Pozuelos project, all located in Salta province.

Ownership is split between the two firms across the assets. Lithium Argentina holds 85% of Pastos Grande and 65% of Sal de la Puna, while Ganfeng holds the remaining stakes.

The Pozuelos-Pastos Grandes project is fully owned by Ganfeng, but will be included in the partnership scope.

Ambitious Plans for Brine and DLE Operations

The new agreement provides a framework to finalize resource development through both traditional brine evaporation and direct lithium extraction (DLE) methods. When completed, the combined lithium projects are projected to yield 150,000 tonnes per year of lithium carbonate equivalent (LCE).

The parties may also expand production to include lithium chloride, providing downstream flexibility for battery material supply. This strategic cooperation adds scale and supply certainty amid global lithium demand fluctuations.

Cauchari-Olaroz Project Supports Growth Trajectory

The two companies also operate Argentina's leading lithium asset, the Cauchari-Olaroz project, via their joint venture Exar. This facility produced 25,400 tonnes of LCE in 2024, and aims for up to 37% output growth in 2025.

Together, the expanded brine portfolio and Exar’s performance underscore Argentina’s growing importance in global lithium supply chains.

The Metalnomist Commentary

As Western automakers seek secure lithium sources, Argentina’s brine projects are gaining strategic prominence. The Lithium Argentina–Ganfeng alliance could evolve into one of South America’s most influential LCE partnerships.