Lithium Argentina and Ganfeng Lithium secure RIGI approval for $1.241 billion expansion of Cauchari-Olaroz lithium project in Argentina
Type: Investment · Technology: Mining · Country: Argentina · Value: $1.24B · Announced: 2026-05-22
The Argentine government approved the inclusion of the Cauchari-Olaroz lithium project's expansion into the Régimen de Incentivo para Grandes Inversiones (RIGI), granting the project a 30-year fiscal, exchange, and customs stability framework. The Stage 2 expansion, led by Lithium Argentina in partnership with Chinese firm Ganfeng Lithium, commits $1.241 billion to increase production capacity by 45,000 tonnes per year of lithium carbonate equivalent (LCE), bringing total capacity to 85,000 tonnes annually. Located in Jujuy Province's Puna region, the project has been operational since 2024 and is part of South America's 'lithium triangle'. The expansion follows an updated mineral resource assessment presented in 2026 that supports the technical feasibility of the growth plan. Benefits under RIGI include a reduced corporate tax rate from 35% to 25%, accelerated depreciation, tariff-free imports of approved capital goods, and export duty exemptions after three years.
Counterparties
- Ganfeng Lithium (Partner)
- Lithium Argentina (Developer)
- Government of Argentina (Regulator)