Lithium Argentina AG reported a strong performance in 2024 with lithium carbonate production reaching 25,400 tonnes, exceeding forecasts. The company anticipates production growth to 30,000-35,000 tonnes in 2025 while achieving cost efficiencies. Technological advancements and regional development plans are set to expand its operations. Financially, the company reduced its debt significantly and maintained a strong cash position.
Lithium Argentina AG has officially announced its operating results for the fourth quarter and the full year of 2024, revealing significant advancements at its Cauchari-Olaroz project, now recognized as Argentina’s premier lithium carbonate operation. The total lithium carbonate production in 2024 reached 25,400 tonnes, surpassing initial projections. During the fourth quarter alone, production was recorded at 8,500 tonnes, signifying a 25% enhancement compared to the previous quarter and achieving 85% of the design capacity.
For 2025, the company forecasts further production growth, estimating between 30,000 and 35,000 tonnes, with a notable increase expected in the latter half of the year due to strategic shutdowns aimed at optimizing chemical recovery and minimizing costs. In terms of finances, the total cost of sales for 2024 amounted to US$178 million, resulting in cash operating costs of US$7,130 per tonne sold. Notably, these costs saw a reduction in the fourth quarter to US$6,630 per tonne, with the 2025 projection anticipating comparable figures and sustaining capital expenditures ranging from US$600 to US$700 per tonne.
Lithium Argentina is actively pursuing advancements in technology, notably through the introduction of new processing methods from Ganfeng Lithium Co. Ltd. These include a solvent-based direct lithium extraction (DLE) process, which is anticipated to be incorporated into the Phase 1 facilities, alongside a planned demonstration plant with a capacity of 5,000 tonnes per annum set to commence by late 2025.
Additionally, the company is initiating Phase 2 of the Cauchari-Olaroz expansion, intended to introduce an additional 40,000 tonnes per annum of production capacity by harnessing the existing infrastructure and innovative processing technologies. Efforts are underway to integrate this expansion into Argentina’s Large Investment Incentive Regime (RIGI).
From a regional perspective, Lithium Argentina, in collaboration with Ganfeng, is executing a comprehensive development strategy that encompasses projects in Salta, including Pozuelos-Pastos Grandes, significantly boosting its stakes in Pastos Grandes (85%) and Sal de la Puna (65%). This ambitious strategy aims to achieve a total production capacity of up to 150,000 tonnes per annum for lithium carbonate, employing both solar evaporation and DLE technology.
Financially, Lithium Argentina has made strides in reducing project-level debt from US$350 million to US$210 million. The company transitioned from Canada to Switzerland in January 2025, adopting the name Lithium Argentina AG while being listed on the TSX and NYSE under the ticker “LAR.” As of December 31, 2024, the company reported US$86 million in cash and equivalents, alongside an undrawn US$75 million credit facility with Ganfeng. Moreover, its subsidiary, Minera Exar S.A., maintained around US$210 million in third-party debt, with a recent acquisition of a US$150 million credit facility to enhance financial flexibility expected to finalize in the second quarter of 2025.
Lithium Argentina AG’s latest results showcase its robust operational performance and strategic growth initiatives at the Cauchari-Olaroz project. With increased production capacity, reduced operational costs, and innovative technological advancements, the company is well-positioned for continued success in the lithium market. The prudent management of debt and financial resources further reinforces its stability as it navigates future expansions in the lithium sector.
Original Source: www.panorama-minero.com
