Argentina Lithium enters $100M deal with Chinese partner to advance Rincon West

Argentina Lithium & Energy (TSXV: LIT) has secured $100 million from its Chinese partner Xi’an Lanshen New Material Technology Co. (Lanshen) in an effort to further advance its Rincon West brine project in Salta province.

As outlined in a framework agreement on Tuesday, Lanshen will provide the funding across three stages of project development at Rincon West.

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

The agreement follows their 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, leading 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 — represents 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/lithium.

30% right to Lanshen

Advancement to Stage 3, said the company, is conditional upon ALESA achieving several key milestones, including an NI 43-101 reserve estimate, the approval of an environmental impact assessment, completion of baseline and site condition studies, and receipt of all required permits and authorizations.

ALESA must also secure project financing as well as all necessary third-party consents, including those required under its existing agreements with Stellantis, which 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 approximately $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 Argentina Lithium’s ALESA subsidiary, which holds the Rincon West project.

The framework agreement provides for a structured, staged pathway for the technical advancement, financing, and potential commercial development, Lithium Argentina said in a press release.

It is “a clear transition from early-stage collaboration toward negotiation of definitive agreements containing a clearly defined technical and investment framework,” CEO Nikolaos Cacos said.

Shares of Argentina Lithium traded flat at C$0.12 apiece on Tuesday, with a market capitalization of C$16.5 million ($12 million).