The Canadian company Argentina Lithium & Energy Corp and the Chinese world leader in Direct Lithium Extraction (DLE) technology, Xi'an Lanshen New Material Technology Co. Ltd., have signed a Memorandum of Understanding (MOU). This agreement will establish a framework for both parties to evaluate the implementation of Lanshen's DLE technology at the Rincón West project, located in the Salar de Rincón in the province of Salta.
The companies intend to jointly advance the Rincón West project through all stages of technical, environmental, regulatory, and engineering development, leading to a comprehensive feasibility study for a 5,000-ton-per-year battery-grade lithium carbonate plant, with future scalability to 15,000-20,000 tons per year. The project is strategically positioned near world-class lithium developments and features infrastructure that includes roads, power, and proximity to railway lines.
The President and CEO of Argentina Lithium, Nikolaos Cacos, stated: "This MOU with Lanshen represents a crucial turning point for Argentina Lithium."
The CEO of Lanshen, Zhijun Feng, commented: "We are delighted to initiate this collaboration with Argentina Lithium. By aligning with a global leader in DLE technology capable of offering pilot systems, engineering, and commercial-scale solutions, we are significantly strengthening the technical base and strategic positioning of Rincón West."
He added: "The combination of capabilities from both organizations will accelerate our development schedule, reduce technical risks, and unlock the full long-term value of our lithium brine assets within the Lithium Triangle."
Zhijun Feng also stated: "Our DLE technology has been developed for over a decade to provide extraction solutions with high lithium recovery, low impurities, and environmental efficiency. Our team looks forward to contributing its engineering capabilities and industrial experience to the Rincón West project, supporting Argentina Lithium on its path to viability and, ultimately, commercial production."
Argentina Lithium's strategic framework is already strengthened by its relationship with Stellantis NV, which holds a 19.9% stake in ALESA and long-term purchase rights for up to 15,000 tpa of LCE. Lanshen's contributions, including technical services, specialized equipment, engineering studies, and pilot plant design, will qualify for an equity stake in Argentina Lithium's wholly-owned subsidiary, Argentina Litio y Energía SA ("ALESA"), through an earn-in structure.
The parties will subsequently negotiate a definitive Collaboration Agreement (DCA) to formalize the commercial agreements, including exclusivity for the DLE technology, governance, long-term financing structures, and intellectual property licenses. The MOU is non-binding except for confidentiality and certain legal provisions and will remain in effect for 12 months while the parties conduct due diligence and negotiate the DCA.
This collaboration marks a significant milestone following Argentina Lithium's recent National Instrument 43-101 Mineral Resource Estimate announcement for Rincón Oeste. The project is strategically situated next to Rio Tinto's world-class Rincón operation in Salta province, placing it in one of the world's most competitive and technically attractive brine jurisdictions. Argentina Lithium will continue to lead the permitting process, community engagement, hydrogeological work, metallurgical programs, site logistics, and the integration of the DLE flowsheet into the overall engineering strategy for Rincón West.
It is expected that the combination of both parties' strengths will reduce development timelines, improve process efficiency, and significantly enhance the project's commercial viability.
