Inspenet, August 13, 2023.
The Canadian mining company Lithium Americas has reported that the plan to divide its operations in North America and Argentina into two independent entities has been supported by 98.85% of shareholders.
After carrying out the separation, the new entity called Lithium Americas will own the Thacker Pass lithium project in Nevada, in addition to its investments in Green Technology Metals and Ascend Elements.
For its part, the other new company, Lithium Argentina , will focus on the assets it owns in the South American country. This includes the Caucharí-Olaroz lithium brine extraction project in Jujuy, which is moving towards full commercial production and the Pastos Grandes lithium brine project in Salta, which was incorporated in December through the acquisition of Arena Minerals.
The Vancouver-based company’s current president and CEO, Jonathan Evans, will retain his position at the new Lithium Americas entity. On the other hand, no names have been provided for the possible executive director of Lithium Argentina.
The Lithium Americas Division
This division of activities will distance Lithium Americas from one of its main investors, the Chinese company Ganfeng Lithium, which in 2018 acquired SQM’s stake in Caucharí-Olaroz and took control of the project in 2020.
Experts have claimed that the decision to break up the Lithium Americas company was taken in consideration of the complex state of relations between the United States and China.
In addition to the $650 million funding obtained from General Motors, Lithium Americas has recently applied for funding from the US Department of Energy, which has allocated significant amounts of money to support battery and metal related projects.
In May, the company’s executive vice president, John Kanellitsas, told investors that filing this type of funding request becomes problematic when the actual recipients of those funds from the Department of Energy are Chinese investors.
The United States and its allies are trying to change China’s supremacy over critical minerals, especially rare earths , by establishing a supply chain that relies on what are seen as more stable and reliable partners.
The split between the two entities is anticipated to take effect in early October, subject to regulatory approvals and closing conditions.
Source: https://www.mineria-pa.com/noticias/accionistas-de-lithium-americas-aproveban-separar-sus-actividades-en-norteamerica-y-argentina/#:~:text=Accionistas %20de% 20Lithium %20Americas% 20approve %20separar% 20its %20actividades% 20in %20Norteam% C3 %A9rica% 20y %20Argentina,-agosto% 202 %2C% 202023&text=The %20minera% 20mining %20de% 20lithium,the %2098.85% 25 %20de% 20the%20shareholders