China’s Ganfeng Lithium to invest USD 2 billion in Argentine lithium project

Photo: Gobierno de la Provincia de Salta.

Chinese miner Ganfeng Lithium, one of the world’s largest lithium producers and a key supplier to Tesla and BMW, announced a USD 2 billion investment in the Pozuelos-Pastos Grandes (PPG) project in Argentina’s Salta province. This move underscores China’s strategy to secure lithium supplies from the “Lithium Triangle”, Argentina, Bolivia, and Chile, which together hold more than half of global reserves.

The initiative seeks to consolidate three brine deposits into a single platform in partnership with Lithium Argentina, to produce 150,000 tons of lithium carbonate equivalent (LCE) annually. If fully realized, the PPG project would rank among the largest lithium operations worldwide, capable of significantly supplying the rapidly growing demand for electric vehicles and energy transition technologies.

Salta’s governor, Gustavo Sáenz, highlighted the strategic role of the province: “These projects not only create jobs and transfer technology, but they also place Argentina on the global lithium map,” he said after meeting with Ganfeng executives.

Currently, the PPG complex is undergoing the public participation and hearing stage, a prerequisite for final environmental approval. Local authorities have stressed that the project must meet sustainability standards, particularly regarding water use, a sensitive issue in the Puna highlands where lithium brine is extracted.

Ganfeng already operates the Mariana Project in Salta and runs a processing plant in General Güemes, contributing to global battery supply chains. The company reports creating over 720 direct jobs in Argentina, 89% of them local and 17% held by women, including leadership positions, an indicator of its integration with the local workforce.

From a geopolitical standpoint, the investment strengthens China’s footprint in Latin America’s energy sector. While Beijing consolidates its control over critical mineral supply chains, the U.S. and European Union are also advancing strategies to secure access to lithium and other resources vital for electrification.

For Argentina, the USD 2 billion commitment comes at a pivotal moment, as the country seeks foreign investment to stabilize its economy and increase international reserves. Yet, the project also sparks debate about balancing foreign capital, state regulation, and local benefits, alongside environmental and social concerns affecting nearby communities.

* Original text in Spanish. Translated by Large Language Model (LLM) technology.

Main Source:

China Ganfeng quiere invertir 2,000 mdd en litio argentino – El Economista

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