The Lithium Triangle's Next Mega-Project: Ganfeng Lithium and Lithium Argentina's Strategic Venture in Argentina’s Pozuelos-Pastos Grandes Basins

The global lithium market is entering a new phase of consolidation, driven by soaring demand for electric vehicles (EVs) and energy storage systems. At the heart of this transformation lies Argentina’s Pozuelos-Pastos Grandes basins, a region now positioned as a critical battleground for lithium supply chain dominance. The recent partnership between Lithium Argentina (a subsidiary of Livent Corporation) and China’s Ganfeng Lithium—two industry heavyweights—signals a strategic move to unlock the basins’ vast untapped potential. This joint venture could redefine the lithium landscape, but it also raises critical questions about resource nationalism, environmental sustainability, and the geopolitical calculus of critical minerals.

The Pozuelos-Pastos Grandes Basins: A Lithium Powerhouse

Stretching across the high-altitude salars of Jujuy and Salta provinces in northwest Argentina, the Pozuelos-Pastos Grandes basins are part of the famed “Lithium Triangle,” a region shared with Bolivia and Chile that holds over 58% of the world’s identified lithium reserves. While Chile and Australia dominate current lithium production, Argentina’s basins offer a unique combination of scalability and underdevelopment.

The basins’ brine deposits are estimated to contain over 10 million tons of lithium carbonate equivalent (LCE), with Lithium Argentina’s holdings alone accounting for nearly 30% of Argentina’s total lithium reserves. However, infrastructure gaps, regulatory hurdles, and the high capital intensity of lithium extraction have historically limited their exploitation. Ganfeng’s entry brings both financial firepower and technical expertise, positioning the partnership to accelerate development timelines.

A Strategic Dance Between East and West

For Ganfeng—China’s largest lithium producer and a key supplier to Tesla, CATL, and BYD—this venture is about securing long-term supply stability. China’s dominance in lithium processing (accounting for ~60% of global refining capacity) is unmatched, but its reliance on imports for raw materials poses a vulnerability. By partnering with Lithium Argentina, Ganfeng gains a foothold in a region that could rival Australia as a lithium superpower.

Meanwhile, Lithium Argentina benefits from access to Ganfeng’s vertically integrated operations, which span mining, refining, and battery material manufacturing. This synergy could help Argentina leapfrog from being a raw material exporter to a player in higher-value lithium derivatives.

Market Dynamics: Supply Chain Volatility and EV Demand

The lithium market is in flux. After a price crash in 2022 due to oversupply, prices have rebounded as automakers scramble to lock in contracts for 2025–2030. The International Energy Agency (IEA) forecasts that lithium demand must grow 30x by 2040 to meet EV adoption targets, with the Pozuelos-Pastos Grandes basins ideally placed to fill this gap.

However, the partnership faces headwinds. Environmental concerns loom large: lithium brine extraction requires massive water use, and communities near the salars have raised alarms about ecological degradation. Argentina’s government, meanwhile, is pushing for “resource sovereignty” laws that could mandate local refining and equity stakes for state-owned firms.

Risks and Opportunities: Navigating the Path to Profitability

Investors must weigh three key risks:
1. Regulatory uncertainty: Argentina’s new Mining Stability Law requires companies to reinvest 10% of profits into local communities and grants the state a 51% stake in projects during national emergencies.
2. Cost inflation: Building infrastructure in remote regions is capital-intensive, with estimates suggesting $1 billion+ in upfront investment for full-scale development.
3. Commodity price volatility: Lithium prices could dip again if new projects (e.g., in Africa or the U.S.) come online faster than expected.

On the flip side, the partnership’s scale could drive economies of scale. Ganfeng’s vertically integrated model allows it to sell lithium hydroxide directly to battery manufacturers, bypassing intermediaries. If the basins achieve their potential, they could produce 200,000 tons of LCE annually by 2030—equivalent to 10% of current global production.

Conclusion: A Pivot Point for Global Energy Transition

The Ganfeng-Lithium Argentina venture is more than a corporate alliance—it’s a bet on Argentina’s role in the EV revolution. With lithium prices hovering around $30,000/ton (up 40% year-on-year) and automakers like Ford and Volkswagen committing to all-electric fleets by 2030, the stakes are enormous.

However, success hinges on balancing environmental stewardship with economic ambition. If the partnership can navigate regulatory and logistical challenges while fostering local buy-in, the Pozuelos-Pastos Grandes basins could become the cornerstone of a new era in lithium production. For investors, this represents both risk and reward: a high-stakes opportunity to profit from the energy transition, but one that demands patience and a keen eye on geopolitical and environmental trends.

The lithium triangle’s next chapter is being written—and the world’s batteries may soon run on its success.