Ganfeng starts lithium production at Argentina’s Mariana project

The Mariana project not only represents a significant source of foreign currency income but also the creation of genuine, quality employment for hundreds of families from Salta.

Chinese company Ganfeng Lithium has begun lithium production at its Mariana project in northern Argentina, the company announced on Wednesday. This milestone marks the launch of one of several lithium projects that Ganfeng is developing in the South American country.

Ganfeng is one of the world’s leading producers of this white metal, essential for manufacturing rechargeable batteries. The Mariana plant, located in Salta province, represents a $790 million investment and has a production capacity of 20,000 metric tons of lithium chloride per year, extracted from the Llullaillaco salt flat.

Additionally, the company has invested $190 million in constructing a solar park to supply the plant’s energy needs.

Wang Xiaoshen, president of Ganfeng Lithium Group, stated that the company’s other lithium projects in Argentina are progressing. According to Xiaoshen, the Pozuelos-Pastos Grandes project is set to begin construction this year, while the Incahuasi-Arizaro project is in an advanced exploration phase.

Ganfeng is also a co-owner, along with Lithium Argentina (LAR), of the Cauchari-Olaroz project, which is already operational, and the Pastos Grandes project, currently in the feasibility stage.

President Javier Milei’s administration has promoted foreign investments in the mining sector, offering an incentives scheme that has been well received by international copper and lithium companies.

Argentina, along with Chile and Bolivia, forms part of Latin America’s so-called "lithium triangle," a region that holds one of the world's largest reserves of this ultra-light metal.

Although several lithium projects are under development in Argentina, some have experienced delays due to falling lithium prices, caused by oversupply and a slowdown in electric vehicle sales.