Lithium Argentina AG announced that its updated mineral resource and reserve estimate for the Cauchari‑Olaroz brine operation in Jujuy Province is now 28.1 million tonnes of lithium carbonate equivalent (LCE), a 42 % increase over the 19.9 million‑tonne figure reported in the 2019 estimate. The new estimate, effective December 31, 2025, was prepared by Aquatec and Groundwater Insight and incorporates additional drilling, operating data, and basin‑wide hydrogeological modeling.
The update shows a 45 % rise in proven reserves, but total proven and probable reserves fell 28 % compared with 2019. The higher proven reserves reflect a tighter focus on the Stage 1 production zone, while the overall decline in total reserves is due to the exclusion of potential Stage 2 volumes from the current estimate. The average lithium grade in the updated resource is 562 mg/L, down from 592 mg/L in 2019, yet remains among the highest in the Lithium Triangle.
The revised figures underpin a Stage 1 production plan of 40,000 tpa of LCE and extend the project life to 35 years, covering 2026 through 2060. The company also confirms that Stage 2, which would add 45,000 tpa of LCE, is supported by the expanded resource base, strengthening the financial case and providing a larger margin of safety for future capital expenditures. Management highlighted that Stage 1 is operating near capacity with costs under $6,000 per tonne and a 97 % utilization rate, positioning the company to accelerate growth.
Analysts responded positively: HSBC upgraded the stock from Hold to Buy and doubled its price target to $9.60, citing the resource upgrade and operational performance. Scotiabank also upgraded the company to Sector Outperform earlier in the year. The company will file a full technical report with Canadian regulators and the U.S. SEC within 45 days of the announcement, detailing methodology and supporting data.
Lithium Argentina operates the project in partnership with Ganfeng Lithium (46.7 %) and JEMSE (8.5 %), with the company holding 44.8 %. Stage 2 permitting and incentive applications were filed in December 2025, with approval expected in the first half of 2026. The company is also advancing the Pozuelos‑Pastos Grandes project in Salta, aiming to build a combined capacity of over 200,000 tpa of LCE across northern Argentina. Despite remaining unprofitable with negative EBITDA, the company’s strong resource base and operational efficiency place it in a favorable position within the rapidly expanding global lithium market.
The updated resource estimate and Stage 1 production outlook reinforce Lithium Argentina’s strategy to de‑risk its growth pipeline and expand its footprint in the Lithium Triangle. The 35‑year project life, coupled with a robust Stage 2 plan, signals a long‑term commitment to scaling production and meeting the growing demand for battery‑grade lithium.
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