Construction of the Cauchari-Olaroz lithium brine project, in Argentina, is substantially complete, with first production set to occur during the current quarter, Lithium Americas reported last week.
In its 2022 financial results, Lithium Americas reported that Cauchari-Olaroz would produce its first product by the end of the second quarter and ramp up to its full production rate of 40 000 t/y of lithium carbonate by the first quarter of next year.
The company, which is developing Cauchari-Olaroz in a joint venture (JV) with Ganfeng Lithium, stated that the project’s capital cost had risen to $979-million at the official Argentina exchange rate. This compared with $852-million, previously $645-million, at the realised market-based exchange rate.
Lithium Americas noted that substantially all the increase in capital costs since the 2020 feasibility study had been offset by realisation of higher market-based exchange rate for Argentine pesos.
The remaining funding requirement for the project is less than $50-million for capital costs, valued added taxes and working capital to reach production and positive cash flow.
The JV is also continuing with planning for a Stage 2 expansion of at least 20 000 t/y of lithium carbonate to align with the completion of Stage 1.