Canada’s Ultra, China’s Zangge Join Forces for Argentina Lithium Project

Ultra Argentina SRL, subsidiary of Vancouver based Ultra Lithium, and China’s Zangge Mining have committed investments totaling $290 million to explore and develop lithium deposits in northwest Argentina, and to build a plant. The Chinese company will initially invest $40 million for the exploration and development of the Laguna Verde project. The remaining $250 million investment is planned at a later date for the construction of a lithium carbonate processing plant.

Ultra and Zangge signed a definitive association agreement last month for the Laguna Verde lithium project. As part of the deal, Zangge will pay Ultra Lithium $10 million, and invest $40 million in the project for a 65% stake in Ultra Argentina, a fully owned subsidiary of the Canadian company.

Argentina is located in the so called “lithium traingle” with neighbors Chile and Bolivia. The region is estimated to hold 56% of the world’s lithium. This means Argentina has the potential to become the world’s third or fourth biggest producer of the battery metal.

The government expects to receive a $4.2 billion combined investment regarding lithium over the next five years. It would help Argentina to double production in 2023, and reach 175,000 tonnes in 2025.

The Latin American nation has already attracted major players over the past year including the world’s second largest miner Rio Tinto and South Korean steelmaker Posco.

The nation’s lithium portfolio includes 23 projects in various stages of development, including the Cauchari-Olaroz project under development by Ganfeng Lithium and Lithium Americas. It is expected to become the country’s top producer with 40,000 tonnes of lithium carbonate equivalent per year, starting from the second half of 2022.

Australia’s Orocobre and US miner Livent, which have supply tie-ups with Toyota and BMW respectively, operate the only two producing lithium mines in the country.

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Do you need to access special insights on this matter?

Start your 7-day free trial  and become a member today

Subscribe to Top Insights Today

Subscribe to Executive Newsletter Top Insights Today

The Executive Newsletter -Top Insights Today- puts global business events in perspective through special insights

Join the ranks of global executives and subscribe to Top Insights Today

Top Insights Today covers insights on energy, clean-tech, oil&gas, mining, rare earths, defense, aviation, infrastructure, manufacturing, electrical vehicles, big-tech, finance and politics of business

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Russia’s Rising Influence in Africa Worries Spain, Britain

In a joint press conference, British and Spanish Defense Ministers warned NATO not to remain indifferent to Russia’s rising influence and activity in Africa. The two defense ministers said Russia’s presence in the continent poses a threat to the security of NATO countries along with its invasion of Ukraine and must be addressed by the military alliance.

Siemens Ending 170-Year Presence in Russia

Siemens announces its full exit from Russia after 170 years following Moscow’s invasion of Ukraine, which is described by the company CEO Busch as a “turning point in history”. The German industrial giant is set to face a €600m hit in the second quarter after the announcement.

Australian, Chinese Companies Face Off to Control DR Congo Lithium Mine

Australia’s AVZ Minerals Ltd. is fighting to regain control of what could be the world’s largest untapped lithium deposit in the Democratic Republic of the Congo (DRC) against ownership claims from Chinese companies. 

Stay informed

error: This content is protected !!