Argentina Lithium & Energy has signed a $100mn agreement with China’s Xi’an Lanshen New Material Technology Co. to advance its Rincon West lithium project in Salta province, marking a step towards potential commercial production, Mining.com reported.
Under the framework agreement, Lanshen will provide funding across three development stages, beginning with pilot-scale direct lithium extraction (DLE) work to support a pre-feasibility study, followed by engineering and permitting for a definitive feasibility study.
The final stage will see the construction and commissioning of a commercial-scale lithium processing facility, contingent on the project meeting technical, environmental and regulatory milestones.
The deal builds on a memorandum of understanding signed in December 2025, which allows the Chinese partner to deploy its proprietary DLE technology and technical expertise throughout the project’s development.
Rincon West, located within the Lithium Triangle, is a greenfield asset with measured and indicated resources estimated at 238,000 tonnes of lithium carbonate equivalent, with an average grade of 296 mg per litre.
The project aims to develop a battery-grade lithium carbonate plant with an annual production capacity of 5,000 tonnes.
Progression to the final investment stage depends on achieving several requirements, including a reserve estimate compliant with NI 43-101 standards, approval of an environmental impact assessment, completion of baseline studies and the securing of all necessary permits.
Argentina Lithium must also obtain project financing and third-party approvals, including those linked to existing agreements with Stellantis, which holds a minority stake and long-term offtake rights.
If the conditions are met, Lanshen is expected to contribute approximately $95.9mn towards engineering, procurement and construction of the lithium facility, as well as provide support for assembly and commissioning.
In return, the Chinese company would have the option to acquire up to a 30% equity stake in Argentina Lithium’s subsidiary ALESA, which owns the Rincon West project.
Chief executive Nikolaos Cacos said the agreement represents “a clear transition from early-stage collaboration toward negotiation of definitive agreements containing a clearly defined technical and investment framework”.
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