Lithium Argentina AG’s 2024 results highlight significant production growth, with a total of 25,400 tonnes of lithium carbonate produced. The company anticipates increased production for 2025, driven by new technologies and expansions. Operating costs are on a downward trend, and the company improved its financial status by reducing debt and securing new credit facilities.
Lithium Argentina AG has published its fourth-quarter and full-year results for 2024, showcasing significant operational and financial achievements at the Cauchari-Olaroz project, now the largest lithium carbonate operation in Argentina. In 2024, the company produced 25,400 tonnes of lithium carbonate, surpassing its initial forecasts, while the fourth-quarter production reached 8,500 tonnes, a 25% increase from the previous quarter and representing 85% of design capacity. For 2025, production is projected to increase to between 30,000 and 35,000 tonnes, with growth anticipated in the second half following planned shutdowns for efficiency improvements.
Operating costs totaled US$178 million in 2024, with cash operating costs initially at US$7,130 per tonne sold. However, costs declined to US$6,630 per tonne in the fourth quarter. The company forecasts similar cost structures for 2025, with sustaining capital expenditures estimated between US$600 and US$700 per tonne.
In terms of technological advancements, Lithium Argentina is adopting innovative processing technologies from Ganfeng Lithium Co. Ltd., including a solvent-based direct lithium extraction (DLE) process, anticipated to begin operations with a 5,000 tpa demonstration plant by late 2025. The expansion of the Cauchari-Olaroz project through Phase 2, which will add 40,000 tpa of capacity, is also progressing, utilizing existing infrastructure and new technologies.
Regionally, the company, in collaboration with Ganfeng, is implementing a development plan that integrates projects in Salta, including Pozuelos-Pastos Grandes, with significant stakes in Pastos Grandes (85%) and Sal de la Puna (65%). This strategy aims for an output of up to 150,000 tpa of lithium carbonate through a blend of solar evaporation and DLE technology.
In terms of financial updates, Lithium Argentina reduced its project-level debt from US$350 million to US$210 million in 2024. The company’s Continuation process from Canada to Switzerland was completed in January 2025, resulting in a rebranding to Lithium Argentina AG and a listing on the TSX and NYSE under the ticker “LAR.” By the end of 2024, the company reported US$86 million in cash and equivalents, along with an undrawn US$75 million credit facility with Ganfeng. Minera Exar S.A., the operational subsidiary, reported approximately US$210 million in third-party debt and secured a new US$150 million credit facility in early 2025, expected to close in the second quarter, which will enhance financial flexibility.
In conclusion, Lithium Argentina AG has demonstrated robust operational and financial performance in 2024, particularly at its Cauchari-Olaroz project. With production exceeding forecasts and a clear trajectory for growth in 2025, the company is poised to advance its technological capabilities and expand its operations. Furthermore, strategic financial management and the reduction of project-level debt underscore a commitment to sustainable growth and financial stability in the evolving lithium market.
Original Source: www.panorama-minero.com
