Australian-listed developer Pursuit Minerals has signed a non-binding memorandum of understanding (MoU) with major South Korean lithium-ion battery cathode active material (CAM) manufacturer EcoPro for all of the lithium carbonate equivalent (LCE) produced from Pursuit's planned Rio Grande Sur (RGS) project in Argentina's Salta state.
Under the MoU, EcoPro will give Pursuit $20mn in pre-pay offtake funding to help RGS speed up to its 5,000 t/yr LCE commercial production, Pursuit said on 9 November.
EcoPro also proposed a further $20mn investment in RGS in exchange for 20pc of project-level equity. EcoPro will use the LCE to produce batteries for clients such as Samsung SDI, said Pursuit.
Pursuit completed a pre-feasibility study for RGS on 6 November, outlining lithium carbonate and lithium chloride production pathways for 5,000 t/yr of LCE in stage one and 17,500 t/yr of LCE in stage two.
The company plans to begin commercial production by January-June 2030 and will ramp up to stage one nameplate capacity by June 2031, before building stage two by 2035 and ramping up to nameplate by June 2037.
Based on RGS' probable ore reserve of 438,000t of LCE, the combined nameplate of stage one and two could run at capacity until 2054.
But the project still needs to complete a definitive feasibility study and secure permits and financing for the project before it reaches a final investment decision and begins construction.
Lithium chloride offers a lower-cost development option for the project, at $432mn in capital expenditure compared with $571mn for the lithium carbonate route. Both pathways may be eligible for Argentina's Large Investment Incentive Regime (Rigi), which provides 30 years of tax, customs and legal stability, the company said.
Pursuit reached first production of LCE at its Salta Capital pilot plant in 2025.
