Investment exceeding $2 billion
Argentina’s Salta province has taken a key step in advancing the country’s lithium sector by approving the Environmental Impact Statement (EIS) for the ambitious Pozuelos–Pastos Grandes project, a joint venture between Ganfeng Lithium and Lithium Argentina. The authorization clears the way for an investment exceeding $2 billion under the Large Investment Incentive Regime (RIGI), positioning Salta as a strategic hub for national lithium production and the transition to clean energy.
Located in the Puna region across the Pozuelos and Pastos Grandes salt flat basins, the project aims to produce 150,000 metric tons of battery-grade lithium carbonate per year, with an expected lifespan of more than 30 years. Operations are scheduled to begin in 2028 in three progressive phases building on both companies’ previous developments.
The EIS, issued by Salta’s Mining Secretariat, followed a comprehensive process that included public hearings with local communities such as Santa Rosa de los Pastos Grandes and Salar de Pocitos, along with a Free, Prior and Informed Consultation (FPIC) aligned with international standards.
Beyond environmental approval, the project now moves into its construction phase, integrating solar evaporation and direct lithium extraction (DLE) technologies to enhance efficiency and sustainability.
The partnership combines Ganfeng’s global leadership in lithium compounds with Lithium Argentina’s local expertise from projects such as Pastos Grandes and Sal de la Puna.
Ganfeng provides key infrastructure, such as camps, wells and test ponds, while Lithium Argentina contributes hydrogeological models and prior environmental studies. Shareholding is split 67% to Ganfeng and 33% to Lithium Argentina, in what is shaping up to be one of the largest mining investments in the country’s history.
Investment outlook and executive statements
Both companies confirmed their intent to apply for the RIGI program, a key incentive to attract long-term investment under Argentina’s energy reform.
At the 14th International Lithium Seminar in Catamarca, executives highlighted the project’s potential. Juan Martín Gilly, vice president of Litio Minera Argentina, a Ganfeng subsidiary, said the company is confident in Argentina’s investment climate.
“We’re in a great moment as Ganfeng advances its second project,” Gilly said. “Argentina has natural resources, a competitive mining legal framework, social stability and top professionals. All that inspires confidence to invest again and keep moving forward.”
He recalled the company’s trajectory, from its entry into Minera Exar (Cauchari–Olaroz, Jujuy) seven years ago to its current production in Mariana (Salta) and Incahuasi.
Ignacio Celorrio, executive vice president of Lithium Argentina, said the alliance was driven by the need for scale.
“This alliance isn’t just about good relations; there’s an objective need for scale and critical mass,” Celorrio said. “Instead of developing three separate projects, we chose to consolidate them. That’s more efficient and helps us compete globally.”
Celorrio also warned that Argentina must expand its global competitiveness. “Argentina no longer competes only within the region; we have to win markets against other producing countries,” he said.
Ganfeng’s Latin America president, Jason Luo, reaffirmed the company’s commitment. “We believe in Argentina and its people,” Luo said. “We’re committed to continue investing, exploring new opportunities and working with communities and authorities.”
Local Industrialization and Job Creation
Salta’s Government Minister Ricardo Villada welcomed the approval as evidence of “growing foreign investment interest,” citing the province’s legal security and sustainable policies.
“Salta offers the right conditions to produce, create local jobs and protect the environment,” Villada said. “We are encouraging companies to move toward greater stages of local industrialization, taking advantage of the province’s strategic location along the Bioceanic Corridor.”
The provincial government urged Ganfeng to explore on-site industrialization through the Salta Free Trade Zone (COZOFRA) to export higher value-added products. This approach complements the Mariana project, already in production at the Llullaillaco salt flat, which generates more than 1,300 jobs and operates on photovoltaic solar energy. It includes an industrial plant in General Güemes and its own railway station for efficient logistics.
Strategic Context in the Lithium Triangle
Pozuelos–Pastos Grandes is part of a larger ecosystem that, together with Cauchari–Olaroz in Jujuy and Mariana in Salta, positions northern Argentina as a global lithium hub. The project is expected to generate thousands of direct and indirect jobs, boosting Puna communities and local supplier networks.
In a recent meeting in Shanghai, Ganfeng’s global president, Wang Xiaoshen, met with Salta officials, reaffirming the company’s role as “a key player in the province’s mining development.”