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Lithium Americas (Argentina) (NYSE:LAAC) executives said 2025 marked a turning point for the company as its Caucharí-Olaroz operation in Argentina demonstrated stable production and declining costs, while the company advanced expansion planning across a broader growth platform that includes the Pastos Grandes (PPG) project.
2025 production near capacity as operating performance improved
CEO Sam Pigott said Caucharí-Olaroz produced “over 34,000 tons” in 2025, landing at the high end of the company’s guidance range. Fourth-quarter output was about 9,700 tons, which management described as operating at roughly 97% of capacity.
- Brine management and wellfield optimization
- Process stability in the chemical plant
- Reduced reagent usage
He said those efforts helped the operation sustain higher production levels for longer periods, with 2025 focused on “consistency, recoveries, and sustaining higher production levels.”
Costs fell to about $5,600 per ton in Q4; long-term estimate cut
Management emphasized cost reductions as a key development. Pigott said fourth-quarter operating cash costs were around $5,600 per ton, down about 30% from more than $8,000 per ton in the first quarter of 2024. He said the improvement was broad-based and included reagents, maintenance, camp services, and overhead, adding that the change was not solely driven by higher volumes but also by structural reductions in variable costs.
Based on the company’s current cost structure at full capacity, Pigott said Lithium Argentina now forecasts long-term costs of approximately $5,400 per ton, down from $6,500 a year earlier, which he characterized as a 17% reduction versus prior internal estimates.
In response to an analyst question about 2026 cost expectations, Pigott said quarterly variability should be expected due to production volumes and the timing of costs, but the company anticipates cash costs “certainly sub $6,000,” with the fourth-quarter figure “a pretty good indication” of where costs may settle.
Cash distributions and new debt facility bolster liquidity
Pigott said Caucharí-Olaroz generated $56 million of adjusted EBITDA in 2025 “despite the low lithium price environment.” After year-end, the operation distributed $85 million in cash, with $42 million attributed to Lithium Argentina’s share. Pigott later said the distribution increased the company’s cash position in the first quarter to “around $95 million.”
The company also completed a $130 million, six-year loan facility with Ganfeng, which Pigott said strengthened the balance sheet and increased flexibility. Discussing capital structure topics, Pigott said the company believes it has “a lot of flexibility and optionality” to address its convertible, pointing to cash on hand and the cash flow capacity of the operation. He also noted the company “has not issued a single share for any financing purposes” during what he described as a challenging lithium price period.
2026 outlook: 35,000-40,000 tons and sensitivity to lithium prices
For 2026, Pigott said the company expects production of 35,000 to 40,000 tons of lithium carbonate, reflecting a focus on maintaining stability at current levels while continuing long-term optimization.
He also provided a sensitivity example for earnings power, saying that using an approximate lithium price of $20,000 per ton and the midpoint of production guidance would imply around $460 million in EBITDA for 2026. Pigott added that sustaining capital requirements are expected to be about $15 million to $20 million per year, and he cited accelerated depreciation as supportive of cash conversion.
On pricing, Pigott said the company’s realized pricing is based on battery-grade lithium carbonate pricing outside of China and that references often cited from market services include VAT in “ex-works” prices. He said adjustments for quality are “around mid-single digits” from the reference price. In a later exchange, he said pricing remains difficult to predict, but that through partner visibility in China, expectations he was hearing suggested pricing could remain volatile but “remain in and around where it is trading today,” with energy storage systems (ESS) described as a key driver of demand.
Expansion plans: stage two at Caucharí-Olaroz and phased PPG development
Pigott said the company has the potential to grow from roughly 40,000 tons per year today to more than 200,000 tons of lithium chemicals across a series of phases. He pointed to permitting progress and the submission of RIGI applications for both PPG and the Caucharí-Olaroz stage two expansion.
On scale, Pigott said the company published an updated resource and reserve estimate for Caucharí-Olaroz, with total measured and indicated resources increasing by about 42%, which he said positioned the asset among the largest lithium brine resources globally. He also described PPG as a “large-scale brine resource” with more than 15 million tons of measured and indicated LCE resources.
For development, Pigott said:
- Caucharí-Olaroz is advancing a stage two expansion plan of 45,000 tons, leveraging existing infrastructure and cash flow from stage one.
- PPG is targeted to become Argentina’s largest lithium operation, with a phased development plan to grow to 150,000 tonnes LCE.
He said near-term execution milestones include securing RIGI approvals, finalizing the stage two development plan, and financing PPG. Pigott also said the company is seeing engagement from customers and potential minority partners for PPG, and reiterated that the company and Ganfeng have an agreement to work on financing plans that would not require equity contributions from shareholders.
On the RIGI framework in Argentina, Pigott called it an attractive investment program, citing benefits including a lower tax rate (35% to 25%) and clearer ability to repatriate cash. In response to a question about debottlenecking stage one versus expanding via stage two, he said stage one could potentially be pushed above 40,000 tons with further investment, but the company’s preference is to make investments under RIGI so production and profits fall within that framework.
Pigott also said the company is monitoring geopolitical developments in the Middle East but has not seen material operational impacts. He said direct exposure to diesel and natural gas is approximately or less than 2% of total operating costs, while indirect exposure through logistics and other lines is under 15% of operating expenses.
On direct lithium extraction (DLE), Pigott said DLE considerations for Caucharí-Olaroz would be part of a stage two approach, with Ganfeng taking the lead on technology work. He said more would be disclosed when the development plan is finalized, targeting mid-2026, and added that the “bar has been raised” for DLE to deliver better capital and operating costs compared with conventional methods.
About Lithium Americas (Argentina) (NYSE:LAAC)
Lithium Americas (Argentina) is a publicly traded corporation on the New York Stock Exchange under the symbol LAAC, created to advance the Cauchari-Olaroz lithium brine project in Argentina’s Jujuy Province. The company is focused on the exploration, development, and eventual production of battery-grade lithium carbonate, a critical input for electric vehicle batteries and grid-scale energy storage systems. Utilizing proprietary brine extraction and processing techniques, Lithium Americas (Argentina) aims to deliver a reliable supply of lithium into global clean-energy supply chains.
The Cauchari-Olaroz project lies at over 4,000 meters above sea level within the Lithium Triangle, a region spanning Argentina, Bolivia and Chile that contains some of the world’s richest lithium reserves.
