Toronto- and NYSE-listed Lithium Americas has announced a reorganisation that will result in the separation of its North American and Argentine business units into two independent public companies.

The separation will establish two separate companies that include an Argentina-focused lithium company, owning Lithium America’s current interests in that country, including the near-production Cauchari-Olaroz lithium brine project; and a North America-focused lithium company, owning the Thacker Pass lithium project, in Nevada.

“Following a comprehensive review of the merits of separating Lithium Americas into two public entities, we have reinforced our beliefs that separating the North American and Argentine businesses will facilitate unlocking the full potential of their significant asset base to deliver maximum value to our shareholders and other stakeholders,” said president and CEO Jonathan Evans.

“Upon completion of the separation, Lithium Americas shareholders will retain ownership in two leading lithium businesses – one of the largest known lithium developments in North America, which is central to the US domestic supply chain, and a near-term producing portfolio with significant growth from two high-quality projects in Argentina.”

Lithium International will continue to hold the company’s 44.8% interest in Caucharí-Olaroz and 100% interest in the Pastos Grandes lithium brine project in Salta, Argentina. It will also hold the company’s 17% investment in TSX-V-listed Arena Minerals.

Meanwhile, Lithium Americas (NewCo) will hold the company’s 100% interest in Thacker Pass, one of the most advanced lithium projects currently known to be under development in the US, as well as the company’s investments in ASX-listed Green Technology Metals and Ascend Elements.

Lithium Americas (NewCo) and Lithium International are expected to build on the teams already in place in North America and Argentina. Evans intends to remain the president and CEO of Lithium Americas (NewCo).

The company aims to complete the separation by the end of 2023.