ASX-listed NEXT Lithium has executed a binding farm-in agreement with fellow ASX-listed company Liontown, which can earn up to a 100% interest in NEXT’s Centenario lithium brine exploration project, in Salta province, Argentina.

The 14 577 ha Centenario lithium project is strategically located adjacent to two of Argentina's largest lithium production and development projects.

To the west, the Pozuelos-Pastos Grandes project, jointly owned by Lithium Argentina and Ganfeng Lithium, is targeting the production of up to 150 000 t/y of lithium carbonate.

To the south, Eramet's Centenario-Ratones operation, which is currently in production, has announced plans to expand production capacity to up to 150 000 t/y of lithium carbonate.

The transaction provides Liontown with a low-cost entry into a strategic lithium brine position in Argentina while providing NEXT with a clear pathway to advance Centenario with a well-capitalised development partner.

Centenario also complements Liontown's established hard-rock lithium operations at Kathleen Valley, in Western Australia, adding exposure to a large-scale lithium brine opportunity in one of the world's most important lithium-producing regions.

“The Centenario project is one of the last large-scale lithium brine exploration projects in Argentina. Partnering with Liontown provides the experience, technical capability and financial strength needed to advance Centenario and realise its full potential.

“As NEXT becomes a Liontown shareholder, I look forward to seeing the Centenario project explored and advanced, and to the value it will create for shareholders. I believe the addition of a large-scale lithium brine asset complements Liontown's existing hard-rock operations and adds another dimension to its world-class lithium portfolio,” says NEXT CEO Kyle Stevenson.

“This transaction gives Liontown a low-cost entry into lithium brine. Brine is one of the two primary sources of the world’s lithium, and this is our first step in building real understanding and capability in it.

“Structuring the deal as a staged farm-in ties our capital to results, so we invest more only as the project proves itself. Kathleen Valley remains our priority, and we will keep pursuing value-accretive growth where it fits our strategy,” adds Liontown MD and CEO Tony Ottaviano.