Lithium Argentina soars on Q2 results, sector rally

Lithium Argentina AG (TSX, NYSE: LAR) soared as much as 28% on Monday morning as investors reacted positively to the company’s latest quarterly results and growth outlook.During the three months ended June 30, the company saw lithium carbonate production from the Cauchari-Olaroz brine operation in Jujuy province rise 18% quarter-over-quarter to 8,500 tonnes. This takes its total output for the first half of the year to 15,700 tonnes, on track to meet the full-year guidance of 30,000–35,000 tonnes.The reported production is presented on a 100% ownership basis. Lithium Argentina currently has a 44.8% economic interest in Cauchari-Olaroz. Its partner, China’s Ganfeng Lithium, owns a larger stake at 46.67%, while JEMSE, a Jujuy province mining and energy company, holds the remaining 8.5%.On top of the higher quarterly output, the Cauchari-Olaroz operation also had a lower cash cost for each tonne of lithium carbonate at $6,098, compared to $6,634 in the prior quarter for an 8% improvement.Revenue to Lithium Argentina for the second quarter totalled $64 million, with an average realized price of approximately $7,400/tonne of lithium carbonate sold. The realized price, the company says, was impacted by the continued decline in global lithium prices during the quarter.“The company delivered continued operational improvements in the second quarter, keeping us firmly on track to meet full-year production guidance,” Sam Pigott, Lithium Argentina’s CEO, commented in a press release Monday.“At Cauchari-Olaroz, production reached more than 85% of capacity, with costs declining towards $6,000/t, supported by higher volumes and targeted cost-reduction initiatives,” he added.Growth plansThe Lithium Argentina-Ganfeng partnership is looking to expand the lithium carbonate production at Cauchari-Olaroz with an additional capacity of 40,000 tonnes per annum.This expansion is expected to use the existing infrastructure and solar evaporation process, while also incorporating the new processing technologies. An application for the Stage 2 expansion is being prepared under Argentina’s large investments’ incentive regime (RIGI) to support potential tax and fiscal benefits, the company said.In addition, the partners are also advancing several projects in the Pozuelos-Pastos Grandes basins. Together known as PPG, the projects are at the feasibility stage and have an estimated total capacity of 150,000 tonnes per annum.Ganfeng and Lithium Argentina are currently exploring financing options, including collaboration with potential customers and strategic partners for offtake and minority ownership interests, to advance the projects.Lithium market rallyLithium Argentina’s share price rallied to its highest since December following the Q2 2025 earnings release. By noon ET, it traded at $3.56 apiece on the NYSE with a market capitalization of approximately $603 million.The stock jump coincides with a sector-wide rally triggered by a major lithium mine shutdown in China, which caused supply concerns and sent prices of the battery metal higher.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com