en.Wedoany.com Reported - Argentina's Large Investment Incentive Regime (RIGI) has approved the Phase II expansion project of Lithium Argentina's Cauchari-Olaroz lithium brine operation located in Jujuy Province. The brine project is owned 44.8% by Lithium Argentina, 46.7% by Ganfeng Lithium, and the remaining 8.5% by JEMSE, the Argentine state-owned mining investment company.
The Phase II expansion plans to add 45,000 tonnes per annum of production capacity, building upon the Phase I operating capacity of 40,000 tonnes per annum of lithium carbonate equivalent (LCE). Argentina's Minister of Economy, Luis Caputo, announced the approval following the completion of the final technical assessment in the RIGI review process, with the formal resolution expected to be published in June.
Lithium Argentina CEO Sam Pigott stated that receiving RIGI approval is a significant milestone in de-risking the Phase II expansion. He noted that Phase I operations are performing well, generating strong cash flow that already supports the next stage of growth. He emphasized that Argentina provides a constructive environment for large-scale investment, and the Pozuelos-Pastos Grandes project is attracting significant interest from a wide range of potential global partners and customers. This helps build a diversified and resilient lithium chemicals supply chain and further de-risks the long-term growth strategy.
RIGI is a federal incentive regime in Argentina for large-scale investments in strategic export sectors such as lithium. This approval provides the Phase II project with 30 years of stability regarding foreign exchange controls, fiscal, and customs regulations. This includes a commitment to invest in accountable assets of at least US$200 million, of which US$80 million must be deployed within two years of approval. Tax benefits include a corporate income tax rate of 25% (down from 35%), a 50% reduction in withholding tax on dividends/remittances after seven years, as well as accelerated depreciation and a VAT credit certificate system. On the customs side, capital goods required for construction and operation can be imported duty-free, and exports are exempt from export duties three years after approval. Regarding foreign exchange, the regime allows export revenues to be retained offshore and provides free access to hard currency for debt servicing and shareholder dividends.
Previously, the company updated the Cauchari-Olaroz mineral resource estimate in March, deeming the resource base sufficient to support future expansions, and submitted the environmental permit application for Phase II. The technical and economic plans for the Phase II development are advancing, with final results expected by mid-2026. After obtaining the Phase I environmental permit in November 2025, the company submitted the RIGI application in early 2026 based on a three-stage development plan targeting a total of 150,000 tonnes per annum of LCE. Lithium Argentina and Ganfeng Lithium continue to engage in discussions with potential strategic partners regarding a minority equity stake.
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