From: Mercom Capital Group
Lithium Argentina, a producer of lithium carbonate for lithium-ion batteries, has closed a $180 million strategic investment from Ganfeng Lithium Group through the issuance of a six-year unsecured convertible note.
The note carries an annual coupon of 4% and matures six years from issuance. It can be converted into Lithium Argentina common shares at $12.50 per share, according to terms the company announced in August of this year.
Lithium Argentina plans to use the net proceeds from the investment, together with cash on hand, to fully repay its $259 million convertible notes due in January 2027.
Sam Pigott, CEO at Lithium Argentina commented, “With the funds from the Strategic Investment and cash distributions from Cauchari-Olaroz, Lithium Argentina now has a materially stronger balance sheet, with lower net debt, a six-year maturity profile and a low cost of capital. That combination gives us the flexibility to advance Stage 2 at Cauchari-Olaroz and support PPG in a disciplined, phased approach that limits equity dilution and unlocks the value of both assets for our shareholders.”
The transaction comes as debt and public market financing activity in the energy storage sector remained largely steady. According to Mercom’s recently released 1H 2026 Funding and M&A for Energy Storage report, announced debt and public market financing totaled $7.3 billion across 22 deals in the first half of 2026, compared with $7.4 billion across 19 deals in the same period of 2025.
Ganfeng currently owns approximately 9.6% of Lithium Argentina’s issued and outstanding common shares. If the $180 million note is fully converted at $12.50 per share, Ganfeng would receive 14.4 million additional common shares, increasing its ownership to approximately 16.1% on a fully diluted basis, according to the company.
Lithium Argentina and Ganfeng are also working to complete their joint venture to consolidate the Pozuelos-Pastos Grandes lithium project in Argentina’s Salta province. Lithium Argentina said the transaction remains on track for completion by the end of September 2026.
The companies also jointly operate the Cauchari-Olaroz lithium brine operation in Argentina’s Jujuy province.
In December 2025, Stardust Power, a developer of battery-grade lithium carbonate, signed a securities purchase agreement with a single institutional investor, providing up to $15 million in senior secured convertible debt financing.
