08:02 AM EDT, 08/12/2025 (MT Newswires) -- Lithium Argentina ( LAR ) traded 3% lower at last look Tuesday in NYSE pre-market trading after it agreed to form a joint venture with Ganfeng Lithium Group to consolidate their assets in Argentina.

The joint venture will own Ganfeng's Pozuelos-Pastos Grandes project as well as Lithium Argentina's ( LAR ) Pastos Grandes and Sal de la Puna projects.

Upon closing, Ganfeng will hold two thirds of the joint venture with Lithium Argentina ( LAR ) having the rest.

The operation will target production of up to 150,000 tonnes per annum of lithium carbonate equivalent, which would make the joint venture among largest operations globally.

The joint venture will utilize a hybrid of direct lithium extraction and solar evaporation to enhance scalability and improve efficiency. A feasibility study is expected by year-end.

As part of the transaction, Ganfeng will provide Lithium Argentina ( LAR ) with a six-year, $130 million debt facility, allowing Lithium Argentina ( LAR ) to refinance corporate debt and strengthen balance sheet.

"This transaction builds on our successful partnership with Ganfeng at Cauchari-Olaroz, Argentina's largest lithium operation," said Sam Pigott, president and CEO of Lithium Argentina ( LAR ). "With this transformative step forward, we are increasing our ownership into the Pozuelos basin and aligning our interests around a substantially larger-scale operation."