Ganfeng Lithium Group invests $180 million in Lithium Argentina through a convertible note
Type: Investment · Technology: Mining · Country: Argentina · Value: $180M · Announced: 2026-09-15
Ganfeng Lithium Group completed a $180 million strategic investment in Lithium Argentina, executed through the issuance of a six-year unsecured convertible note. This transaction strengthens Lithium Argentina's financial structure as it prepares for the expansion of Caucharí-Olaroz and advances the development of Pozuelos-Pastos Grandes (PPG) with Ganfeng. The note bears an annual interest rate of 4% and can be converted into ordinary shares of Lithium Argentina at $12.50 per share. The funds, along with available cash, will be used to fully cancel $259 million in convertible notes maturing in January 2027. Ganfeng's stake in Lithium Argentina could increase from 9.6% to approximately 16.1% upon full conversion of the new note.
Analysis
Ganfeng Lithium Group issued a six‑year unsecured convertible note of $180 million to Lithium Argentina. Lithium Argentina, an Argentine mining company developing the Cauchari‑Olaroz lithium project, currently holds a 9.6% stake by Ganfeng. Ganfeng Lithium is a global lithium producer with operations covering resource exploration, mining, processing, battery manufacturing and recycling. The note carries a 4% annual interest rate, is convertible at $12.50 per share, will raise Ganfeng’s ownership to about 16.1%, and the proceeds will be used to retire $259 million of convertible notes maturing in January 2027.
Key points
- $180 million six‑year unsecured convertible note
- 4% annual interest rate
- Conversion price of $12.50 per share
- Potential increase of Ganfeng’s stake to ~16.1%
- Use of funds to cancel $259 million of notes due January 2027
Counterparties
- Ganfeng Lithium (Investor)
- Lithium Argentina (Borrower)
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