Lithium Argentina Finalizes PPG Joint Venture; Announces $180M Strategic Investment from Ganfeng

Rhea-AI Summary

Lithium Argentina (TSX/NYSE: LAR) and Ganfeng signed definitive agreements to finalize the PPG JV, consolidating the Pozuelos-Pastos Grandes, Pastos Grandes and Sal de la Puna projects in Salta, Argentina into a basin-wide development targeting 150,000 tpa LCE across three phases.

Ganfeng will own 67% and Lithium Argentina 33%, with key decisions requiring approval from both partners and offtake rights pro rata to ownership. Concurrently, Ganfeng will make a $180 million unsecured strategic investment via a 6‑year 4.0% convertible note at $12.50 per share, a ~96% premium to the recent NYSE VWAP. Lithium Argentina plans to use proceeds, plus existing cash, to fully repay $259 million of convertible debt due January 2027, terminate a $130 million secured facility and extend its debt maturity profile on an unsecured basis. Ganfeng’s stake could rise from 9.6% to about 16.1% on full conversion, subject to a 19.99% cap.

Positive

• $180 million unsecured 6-year convertible note at 4.0% coupon
• Conversion price $12.50, about 96% above five-day NYSE VWAP
• Proceeds expected to fully repay $259 million 2027 convertible debt
• Termination of existing $130 million secured facility and related offtake rights
• PPG JV consolidates projects targeting 150,000 tpa LCE across three phases
• PPG JV owned 67% Ganfeng and 33% Lithium Argentina with shared governance

Negative

• Potential issuance of 14.4 million new shares to Ganfeng on full conversion
• Ganfeng ownership could increase from 9.6% to about 16.1% fully diluted
• Convertible note carries ongoing 4.0% annual interest expense
• Lithium Argentina remains a 33% minority partner in the PPG JV

News Explained

The headline’s “finalizes” refers to signed definitive agreements, not completed transactions: the PPG JV and $180 million note are expected to close in September 2026, subject to exchange approvals; if completed and converted, the note could add 14.4 million shares.

News Market Reaction – LAR

-1.76% 5.1x vol

3 alerts

-1.76% Session close to close

-4.6% Trough Tracked

$1.17B Market Cap

5.1x Rel. Volume

In the Aug 24 session, LAR declined 1.76%, reflecting a mild negative market reaction. Argus tracked a trough of -4.6% from its starting point during tracking. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility. Trading volume was exceptionally heavy at 5.1x the daily average, suggesting significant selling pressure.

Data tracked by StockTitan Argus on the day of publication.

Market Context

News_id 892329 provides a -1.36% 24-hour partnership precedent for evaluating this PPG JV announceme...

Analysis

News_id 892329 provides a -1.36% 24-hour partnership precedent for evaluating this PPG JV announcement. The platform record adds a historical divergence lens, while current short positioning is categorized as low. Recent filings disclosed material going-concern uncertainty related to refinancing.

Key Figures

Strategic investment: $180 million Coupon: 4.0% per annum Conversion price: $12.50 per share +5 more

8 metrics

Strategic investment $180 million Unsecured convertible note from Ganfeng

Coupon 4.0% per annum Strategic investment note, payable semi-annually

Conversion price $12.50 per share Convertible note terms

VWAP premium 96% Premium to five-day NYSE VWAP ending August 21, 2026

Convertible debt repayment $259 million Debt due January 2027

PPG development target 150,000 tpa LCE Three-phase integrated development

PPG JV ownership 67% / 33% Ganfeng / Lithium Argentina ownership interests

Conversion cap 19.99% of issued and outstanding shares Maximum conversion ownership under the note

Previous Partnership Reports

1 past event · Latest: Aug 12 (Positive)

Same Type Pattern 1 events

Date	Event	Sentiment	24h Move	Catalyst
Aug 12	PPG JV partnership	Positive	-1.4%	PPG JV combined Ganfeng and Lithium Argentina projects with a six-year debt facility.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

The one tag-specific precedent was a partnership announcement followed by a -1.36% 24-hour reaction, diverging from the announcement's positive framing.

Key Terms

convertible note, volume-weighted average price, lithium carbonate equivalent, anti-dilution adjustments

4 terms

convertible note financial

"Ganfeng has agreed to invest $180 million in Lithium Argentina through a six-year unsecured convertible note"

A convertible note is a type of loan that a company gets from investors, which can later be turned into company shares instead of being paid back in cash. It matters because it helps startups raise money quickly without setting a fixed value for the company right away, making it easier to grow and attract investors.

volume-weighted average price financial

"the five-day volume-weighted average price ("VWAP") of the Company's common shares"

Volume-weighted average price (VWAP) is the average price of a stock over a specific time period where each trade is weighted by the number of shares traded, so larger trades influence the average more than small ones. Investors and traders use VWAP as a reference point to judge whether trades are happening at relatively good or poor prices—like checking the average price paid for an item at a market where bulk purchases count more than single-item buys.

lithium carbonate equivalent technical

"150,000 tonnes per annum ("tpa") of lithium carbonate equivalent ("LCE")"

Lithium carbonate equivalent (LCE) is a standardized measure that converts the lithium contained in various minerals or chemical products into the amount that would be present as lithium carbonate. Like converting different currencies into a single unit to compare value, LCE lets investors compare production volumes, resource estimates and pricing across projects and product types, making forecasts and company statements easier to evaluate side-by-side.

anti-dilution adjustments financial

"includes customary anti-dilution adjustments and a 12-month participation right"

Anti-dilution adjustments are changes made to the ownership stakes or value of an investment to protect investors from having their shares become less valuable if the company issues new shares at a lower price. Imagine buying a piece of a pie, and then the pie is cut into more slices without increasing in size—these adjustments help ensure your slice still retains its worth. They matter to investors because they help preserve the value of their investment when the company’s share price drops.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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ZUG, Switzerland, Aug. 24, 2026 (GLOBE NEWSWIRE) -- Lithium Argentina AG ("Lithium Argentina" or the "Company") (TSX: LAR) (NYSE: LAR) and Ganfeng Lithium Group Co., Ltd. ("Ganfeng") today announced they have entered into definitive agreements to finalize the new joint venture ("PPG JV") consolidating the Pozuelos-Pastos Grandes projects ("PPG") in Salta Province, Argentina.

Concurrently, Ganfeng has agreed to invest $180 million in Lithium Argentina through a six-year unsecured convertible note with a 4.0% coupon and convertible into Lithium Argentina’s common shares at $12.50 per share (the "Strategic Investment"). The conversion price represents a premium of approximately 96% to the five-day volume-weighted average price ("VWAP") of the Company's common shares on the NYSE for the period ending August 21, 2026. Proceeds, together with cash on hand, are intended to be used to fully repay the Company’s $259 million convertible debt due January 2027, extending the Company’s debt maturity profile on an unsecured basis and strengthening the balance sheet.

Sam Pigott, CEO of Lithium Argentina, commented: "These transactions strengthen our balance sheet and minimize dilution for our shareholders, while positioning both Cauchari-Olaroz and PPG to deliver significant value. At Cauchari-Olaroz, with over $300 million of liquidity at the operation, access to low-cost financing and substantial free cash flow generation, we are strongly positioned to fund the Stage 2 expansion organically and accelerate our growth plans. At PPG, the consolidated joint venture brings together three complementary projects into a single large scale operation - strengthening our joint financing process already underway and preserving every option to unlock its full value for shareholders."

Wang Xiaoshen, CEO of Ganfeng, commented: "The PPG JV and this Strategic Investment reflect the strength of a partnership built over nearly a decade and more than $2 billion of combined investment in Argentina’s lithium sector. At Cauchari-Olaroz, the largest lithium brine operation in Argentina, we have demonstrated what our companies can achieve together, and this latest investment reflects the strong long-term value Ganfeng sees in Lithium Argentina and our confidence in the growth we are building. Together, we are advancing a shared vision to grow to over 200,000 tonnes per annum of LCE capacity - bringing advanced processing technologies, jobs and investment to make Argentina the leading source of growth in low-cost, environmentally responsible lithium chemicals production."

PPG JV

Lithium Argentina and Ganfeng have entered into definitive agreements establishing the PPG JV, bringing together three adjacent projects in Salta Province, Argentina - Ganfeng's Pozuelos-Pastos Grandes project, Lithium Argentina's Pastos Grandes and Sal de la Puna projects - as a single consolidated basin-wide development. The PPG JV is advancing an integrated development targeting 150,000 tonnes per annum ("tpa") of lithium carbonate equivalent ("LCE") across three phases, leveraging shared infrastructure and one of the largest consolidated lithium brine resource bases globally.

PPG JV Key Terms:

• Joint Partnership: Ganfeng and Lithium Argentina hold 67% and 33%, respectively.
• Governance Rights: Key decisions, including approval of the development plan, financings and budgets, require the approval of both PPG JV partners.
• Operatorship: Ganfeng’s team in Salta will act as operator with a joint technical and financial committee providing oversight of all key decisions.
• Funding: Both partners fund the PPG JV in proportion to their ownership interests; annual funding in excess of $20 million requires joint approval until a project-level financing process is completed.
• Financing Process: The Company and Ganfeng continue to jointly advance the financing process for the PPG JV, including project-level debt and a potential minority strategic investor.
• Offtake Rights: Both parties are entitled to offtake in proportion to their ownership interests.
• Investment to Date: A combined historical investment, including property acquisition and development, of $1.8 billion.
• RIGI: Application submitted in Q1 2026, incorporating the full 150,000 tpa of LCE development plan, with approval expected by the end of 2026.

PPG JV is expected to be completed in September 2026. Upon completion, the PPG projects will be consolidated under Millennial Lithium B.V., a Dutch holding company owned 67% by Ganfeng and 33% by Lithium Argentina, which will indirectly own 100% of the Argentine entities holding the projects consisting of PPG.

$180 Million Strategic Investment

Lithium Argentina has agreed to issue a $180 million unsecured convertible note to Ganfeng with the following key terms:

• Offering: $180 million unsecured convertible note.
• Coupon: 4.0% per annum, payable semi-annually.
• Conversion Price: $12.50 per share, representing a premium of approximately 96% to the five-day VWAP of the Company's common shares on the NYSE.
• Maturity: Six years from the date of issuance (2032), if not converted or redeemed earlier.
• Accelerated Redemption: Redeemable by the Company at par after the first anniversary of issuance if the Company's share price exceeds 130% of the conversion price for 20 trading days within any 30 consecutive trading-day period.
• Change of Control: Upon a change of control, the note may be converted prior to closing or the note rolls into the consideration received by common shareholders (including securities of a publicly listed acquirer).
• Other Terms: Unsecured, with no offtake rights or other commercial arrangements attached. The note is transferable only with the Company's consent, is subject to hedging restrictions and includes customary anti-dilution adjustments and a 12-month participation right for Ganfeng to maintain its ownership level. Conversion is subject to a cap of 19.99% of the Company's issued and outstanding shares, with terms otherwise customary for a convertible offering.
• Use of Proceeds: Repayment in full of the Company’s existing convertible debt due January 2027.
• Closing: The Strategic Investment is expected to close in September 2026, subject to customary closing conditions, including approval of the TSX and NYSE.
  

Lithium Argentina ended Q2 2026 with $100 million in cash and equivalents and received an additional $27 million in distributions from Cauchari-Olaroz in Q3 2026. With the proceeds of the Strategic Investment and cash available, the Company expects to fully repay the $259 million convertible debt due January 2027. Concurrent with closing of the Strategic Investment, the Company will terminate the existing $130 million debt facility, releasing the associated security and preferential offtake rights.

Ganfeng currently owns approximately 9.6% of the Company's issued and outstanding common shares. Assuming conversion of the note in full, Ganfeng would receive 14.4 million additional common shares and would own approximately 16.1% of the Company's common shares on a fully diluted basis.

ABOUT LITHIUM ARGENTINA

Lithium Argentina is a producer of lithium carbonate for use primarily in lithium-ion batteries and electric vehicles. The Company, in partnership with Ganfeng, operates the Cauchari-Olaroz lithium brine operation in the Jujuy province of Argentina and is advancing PPG in the Salta province of Argentina. Lithium Argentina currently trades on the TSX and on the NYSE under the ticker "LAR".

Cauchari-Olaroz is 44.8% owned by the Company, 46.7% by Ganfeng and 8.5% by JEMSE, a mining investment company owned by the government of Jujuy Province in Argentina.

For further information contact:
Investor Relations
Telephone: +1 778-653-8092
Email: kelly.obrien@lithium-argentina.com
Website: http://www.lithium-argentina.com

FORWARD-LOOKING INFORMATION

This news release contains "forward-looking information" and "forward-looking statements" (which we refer to collectively as forward-looking information) under the provisions of applicable securities legislation. Forward-looking information can be identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "propose", "potential", "target", "intend", "could", "might", "should", "believe", "scheduled", "implement" and similar words or expressions. All statements, other than statements of historical fact, are forward-looking information. Forward-looking information in this news release include, without limitation, information with respect to the following matters or the Company’s expectations relating to such matters: the anticipated completion, terms and conditions and anticipated benefits of the PPG JV and the Strategic Investment; the receipt of all necessary approvals for the Strategic Transaction and the PPG JV, including of the approval of the TSX and NYSE of the Strategic Investment; the expected use of proceeds from the Strategic Investment, together with cash on hand, to repay, in full, the convertible notes due January 2027, and the anticipated benefits therefrom; the termination of the existing $130 million debt facility and related release of the associated security and preferential offtake rights concurrently with the closing of the Strategic Investment; plans to grow to over 200,000 tpa of LCE capacity and bringing advanced processing technologies, jobs and investment to Argentina and the anticipated benefits therefrom; the financing plans for the PPG JV, including project-level debt and the potential introduction of a minority strategic investor, and the expectation that the PPG JV and Stage 2 at Cauchari-Olaroz will each be self-funded; the approval of Stage 2 expansion at Cauchari-Olaroz under RIGI and the anticipated timing for formal ratification of such approval; the benefits of the approval of Stage 2 expansion at Cauchari-Olaroz under RIGI; the Company’s plans for PPG and the PPG JV, including building a diversified and resilient supply chain of lithium chemicals and the anticipated benefits therefrom and the advancement of integrated development targeting 150,000 tpa of LCE across three phases; benefits of RIGI; the Company’s plans and next steps to advance Stage 2 and PPG; the timing and amount of future production, capacity and anticipated costs; and global production estimates.

Forward-looking information may involve known and unknown risks, assumptions and uncertainties which may cause the Company’s actual results or performance to differ materially. This information reflects the Company’s current views with respect to future events and is necessarily based upon a number of assumptions that, while considered reasonable by the Company today, are inherently subject to significant uncertainties and contingences, and accordingly, the Company can give no assurance that these assumptions and expectations will prove to be correct. With respect to forward-looking information included in this news release, the Company has made assumptions regarding, among other things: ability of the Company and Ganfeng Lithium Group Co. Ltd. to complete the PPG JV and Strategic Investment on the terms and conditions as currently contemplated; current technological trends; the business relationship between the Company and Ganfeng Lithium Group Co. Ltd.; ability to fund its operations; the ability to operate in a safe and effective manner; uncertainties relating to obtaining and/or maintaining mining, exploration, development, environmental and other permits or approvals in Argentina; demand for lithium; impact of increasing competition in the lithium business, including the Company’s competitive position in the industry; general economic conditions; stability and support of legislative, regulatory and community environment in the jurisdiction where it operates; estimates of and changes to market prices for lithium and commodities; estimates costs for the project or operation; estimates of mineral resources and mineral reserves, including whether mineral resources will ever be developed into mineral reserves; reliability of technical data; and the ability to achieve full production; and accuracy of budget and estimates. Forward-looking information also involves known and unknown risks that may cause actual results to differ materially, these risks include, among others: the PPG JV and the Strategic Investment may not be completed as anticipated, or at all; the anticipated benefits of the PPG JV and the Strategic Investment may not be realized as contemplated, or at all; the Company may not obtain all necessary approvals for the Strategic Transaction and the PPG JV, including of the approval of the TSX and NYSE of the Strategic Investment, as contemplated, or at all; the Company may not be able to use proceeds from the Strategic Investment, together with cash on hand, or realize the benefits from the intended use, as contemplated, or at all; the Company may not be able to terminate the existing $130 million debt facility and complete the related release of the associated security and preferential offtake rights as contemplated, or at all; the Company and Ganfeng may not be able to achieve over 200,000 tpa of LCE capacity in Argentina and realize the anticipated benefits therefrom, as contemplated, or at all; the Company may not be able to achieve the financing plans for the PPG JV as contemplated, or at all; the approval of Stage 2 expansion at Cauchari-Olaroz under RIGI may not be obtained and the anticipated timing for formal ratification of such approval may not occur as contemplated, or at all; the benefits of the approval of Stage 2 expansion at Cauchari-Olaroz under RIGI may not be realized as anticipated, or at all; the Company’s plans for PPG and the PPG JV may not be implemented as contemplated, or at all; the Company’s plans and next steps to advance Stage 2 and PPG may not be implemented as contemplated, or at all; the benefits from the Company’s advancement of Stage 2 and PPG may not be realized as anticipated, or at all; the benefits of RIGI may not be realized as anticipated, or at all; the operations may not operate and produce as planned; cost overruns; market prices affecting development of the operation; risks associated with co-ownership arrangements; risks with ability to successfully secure adequate financing if necessary; risks to the growth of the lithium markets; lithium prices; inability to obtain any future required governmental permits and that operations may be limited by government-imposed limitations; technology, cyber security and artificial intelligence risk; inability to achieve and manage expected growth; political risk associated with foreign operations, including co-ownership arrangements with foreign domiciled partners; emerging and developing market risks; operational risks; changes in government regulations; changes in environmental requirements; failure to obtain or maintain necessary licenses, permits or approvals; insurance risk; receipt and security of mineral property titles and mineral tenure risk; changes in project or operation parameters; uncertainties associated with estimating mineral resources and mineral reserves, including uncertainties regarding assumptions underlying such estimates; whether mineral resources will ever be converted into mineral reserves; opposition to the Company’s projects; geological or technical or processing problems; liabilities and risks; health and safety risks; unanticipated results; unpredictable weather; unanticipated delays; reduction in demand for lithium; inability to generate profitable operations; restrictive covenants in debt instruments; intellectual property risks; dependency on key personnel; currency and interest rate fluctuations; and volatility in general market and industry conditions. Additional risks, assumptions and other factors are set out in the Company’s management discussion analysis and most recent Annual Report on Form 20-F, copies of which are available on SEDAR+ at www.sedarplus.ca

Although the Company has attempted to identify important risks and assumptions, given the inherent uncertainties in such forward-looking information, there may be other factors that cause results to differ materially. Forward-looking information is made as of the date hereof and the Company does not intend, and expressly disclaims any obligation to, update or revise the forward-looking information contained in this news release, except as required by law. Accordingly, readers are cautioned not to place undue reliance on forward-looking information.

FAQ

What is the PPG joint venture between Lithium Argentina (LAR) and Ganfeng announced on August 24, 2026?

The PPG JV combines Pozuelos-Pastos Grandes, Pastos Grandes and Sal de la Puna into one basin-wide project targeting 150,000 tpa LCE. According to Lithium Argentina, Ganfeng will own 67% and Lithium Argentina 33%, sharing governance and proportional offtake rights from the integrated development.

What are the key terms of Lithium Argentina’s $180 million convertible note investment from Ganfeng (LAR) in 2026?

Lithium Argentina agreed to a $180 million unsecured convertible note with a 4.0% coupon and $12.50 conversion price. According to Lithium Argentina, the note matures in six years, carries standard anti-dilution, is capped at 19.99% ownership and includes an issuer redemption feature after year one.

How will Lithium Argentina (LAR) use the proceeds from Ganfeng’s 2026 strategic investment?

Lithium Argentina intends to use the $180 million proceeds to fully repay its $259 million convertible debt due January 2027. According to Lithium Argentina, closing will also trigger termination of a $130 million secured facility, releasing associated security and preferential offtake rights.

How does the PPG JV ownership and offtake structure work for Lithium Argentina (LAR) and Ganfeng?

In the PPG JV, Ganfeng will hold 67% and Lithium Argentina 33%, funding in proportion to these interests. According to Lithium Argentina, both parties receive offtake rights pro rata and key decisions, including development plans and budgets, require approval from both partners.

What is the potential impact of the Ganfeng convertible note on Lithium Argentina’s (LAR) share count and ownership structure?

Ganfeng currently owns about 9.6% of Lithium Argentina’s common shares. According to Lithium Argentina, full conversion of the note would issue 14.4 million shares, increasing Ganfeng’s stake to roughly 16.1% on a fully diluted basis, subject to a 19.99% cap.

When are the PPG JV completion and Lithium Argentina’s strategic investment from Ganfeng expected to close?

Completion of the PPG JV and closing of the strategic investment are both expected in September 2026. According to Lithium Argentina, the investment remains subject to customary closing conditions, including approvals from the TSX and NYSE and standard regulatory clearances.