Argentina Lithium gets $100M to advance Rincon West

Argentina Lithium & Energy (TSXV: LIT; US-OTC: LILIF) has secured $100 million (C$137 million) from its Chinese partner Xi’an Lanshen New Material Technology Co. to help advance the Rincon West brine project in Salta province.

A framework agreement disclosed on Tuesday calls for Lanshen to provide the funding across three stages of project development at Rincon West.

The first two stages entail pilot-scale direct lithium extraction (DLE) work to support a pre-feasibility study and engineering and permitting for a definitive feasibility study. A third stage envisions the construction and commissioning of a commercial-scale lithium processing operation.

The agreement follows a December 2025 memorandum of understanding that allows Lanshen to deploy its proprietary DLE systems and other technical expertise to help advance the project through all stages of development. This will lead to the full feasibility-level evaluation of a battery-grade lithium carbonate plant with annual production capacity of 5,000 tonnes per year.

Rincon West — one of four assets held by Argentina Lithium in the Lithium Triangle — is a greenfield project with a measured and indicated resource of 238,000 tonnes in lithium carbonate equivalent (LCE), contained within 0.15 cubic meters of brine with an average grade of 296 mg of lithium.

30% right to Lanshen

Advancement to Stage 3 is conditional upon the company’s Argentine unit — Argentina Litio y Energia, or ALESA — achieving several key milestones. These include an NI 43-101 reserve estimate, the approval of an environmental impact assessment, the completion of baseline and site condition studies and the receipt of all required permits and authorizations.

 In addition, ALESA must secure project financing as well as all necessary third-party consents, including those required under its existing agreements with Stellantis. The European carmaker holds a 19.9% interest in ALESA and long-term offtake rights.

Subject to the successful completion of prior stages and other conditions, Lanshen would contribute about $95.9 million for the fully integrated engineering, procurement and supply of the lithium facility. It will also be responsible for on-site assembly support, pre-commissioning and commissioning activities.

In return, Lanshen would be granted the right to earn up to a 30% equity interest in ALESA.

The agreement disclosed Tuesday provides for a structured, staged pathway for the technical advancement, financing, and potential commercial development, Argentina Lithium says. It is “a clear transition from early-stage collaboration toward negotiation of definitive agreements containing a clearly defined technical and investment framework,” said CEO Nikolaos Cacos.

Argentina Lithium shares fell 4% to 12¢ apiece on Tuesday. That gave the company a market capitalization of about C$17 million ($12 million).