Argentina Lithium & Energy Corp. has signed an agreement with China’s Xi’an Lanshen New Material Technology Co., Ltd. to plan development of the Rincón West lithium project in Salta Province, including a potential investment of up to US$100 million to accelerate the project toward production.

The commitment covers technical aspects, financing and commercial strategy, as well as the possibility of Blue Deep acquiring up to 30% of Argentina Lithium & Energy Corp. (Alesa).

Under a memorandum of understanding from December 2025, the alliance will give Argentina Lithium access to Blue Deep’s engineering and technical capabilities, including the direct lithium extraction (DLE) technology to be used in the Rincón West operation.

Nikolaos Cacos, CEO of the Canadian company, said: “Blue Deep’s experience in DLE and project execution will enable us to accelerate timelines, improve recovery rates and move toward a scalable and efficient production model.”

According to Argentina Lithium, global demand for lithium-ion batteries is expected to keep growing at 27% per year, reaching about 4,700 GWh by 2030.

Blue Deep’s work will aim to advance the feasibility study through to production, based on a three-phase plan:

Phase 1: Focus on conducting pilot-scale direct lithium extraction (DLE) brine testing, process validation and engineering design to support a pre-feasibility study (PFS), which will include flow sheets and capital and operating cost data.

Phase 2: Focus on engineering design, the definitive feasibility study and permitting, as well as integrating the technical work carried out by Lanshen in accordance with Canadian standard NI 43-101.

Phase 3: After completing technical studies, obtaining approval of the environmental impact report and securing permits and authorizations from Argentine federal and provincial authorities, establish a comprehensive framework for the construction and commissioning of the lithium processing plant.

On the other hand, Alesa must raise funds for the project, including commitments with third parties and with its automaker partner Stellantis, which holds a 19.9% stake and purchase rights in the company.

Subject to satisfying Chinese and Canadian regulatory conditions and completing each development phase, Blue Deep will contribute US$95.9 million in the form of engineering, procurement and supply for the construction of a plant with annual capacity of 5,000 tons of battery-grade lithium carbonate.

Blue Deep’s responsibilities will include international logistics, transportation and on-site assembly support, pre-commissioning and commissioning, performance testing, startup and operator training programs.

The agreement will be advised on financial matters by Southern Cone Partners and is non-binding except for certain customary provisions such as confidentiality.

Argentina Lithium is part of South American private mining exploration entity Grupo Grosso and is also advancing other lithium projects in the country, including the Incahuasi and Pocitos projects.