The Chinese mining company Ganfeng Lithium advanced in Salta with a new key step in the lithium and mining business: it formally requested that its Pozuelos Pastos Grandes project, located in the Puna of Salta, be incorporated into the Large Investment Incentive Regime (RIGI). The initiative, which sits on the salt flats of Pozuelos and Pastos Grandes, foresees an investment of close to USD 3,000 million and aims to become one of the largest lithium developments in the country.
The request to the RIGI comes after the rejection of the Mariana project, also controlled by Ganfeng in Salta, and now proposes a scheme specifically designed to meet the demands of the regime. Production for Pozuelos Pastos Grandes will also combine traditional methods and newer technologies for lithium extraction.
This project will be developed by subsidiary Lithea Inc. and Lithium Argentina, with an expected service life of 25 years. Its design maximum annual capacity is 150,000 tons of lithium carbonate, provided that the three stages of work and commissioning are completed as presented.
Pozuelos-Pastos Grandes: mega lithium and mining project in the Puna of Salta
The Pozuelos Pastos Grandes project is located on the salt flats of Pastos Grandes and Pozuelos, in the heart of the Puna de Salta, with a projection of more than two decades of mining activity linked to lithium. The work area is located about 13 km south-southwest of Santa Rosa de los Pastos Grandes, 56 km from San Antonio de los Cobres and 154 km northwest of the city of Salta, in an environment of altitude that is around 3,785 meters above sea level.
The exploitation area covers more than 8,664 hectares in the Salar de Pastos Grandes alone, and is part of a mining corridor where other lithium projects are already advancing. In this strip of the Puna, mining is consolidated as one of the activities with the greatest economic weight, with a focus on the export of strategic minerals.
According to the documentation submitted by Ganfeng, Pozuelos Pastos Grandes was structured from the beginning as a new project within the framework of the RIGI. The company explained that the undertaking is not in execution nor was it inaugurated, so it seeks to fit from scratch into the rules of this incentive scheme for large investments.
In the production design, the company foresees three staggered stages of construction and operation. The aim is that, once completed, the plant will achieve a capacity of over 150,000 tonnes of lithium carbonate per year. This volume would place Pozuelos Pastos Grandes among the largest lithium projects in Argentina and the region, according to the projections included in the presentation.
For the first phase, there is already an approved Environmental Impact Statement, which allows progress in the preparation of initial works linked to the extraction and processing of brines. The expected useful life for the Pastos Grandes module is also set at 25 years, aligned with the total horizon of the PPG complex.
The global investment estimated at USD 3 billion is presented by the company as having a structural impact, both for the amount and for the level of mining, energy and logistics infrastructure that a project of this magnitude requires in the Puna.
Hybrid technology, RIGI and differences with the Mariana project
Ganfeng proposes for Pozuelos Pastos Grandes a hybrid lithium mining scheme that combines traditional solar evaporation and direct lithium extraction (DLE), with the intention of improving efficiency and reducing environmental impacts. The technical plan includes brine extraction, use of solar evaporation pools and conventional treatment of lithium brines, in addition to the incorporation of direct extraction technologies in part of the process.
According to Ganfeng, this hybrid technology aims to optimize resource usage and shorten production times, while seeking to respond to common environmental questions about the exploitation of salt flats. The use of DLE, according to Ganfeng, is integrated into practices already proven in the lithium industry at an international level.
Pozuelos Pastos Grandes is stressed to be designed "under the RIGI" and that all regulatory and operational deadlines were designed according to the conditions of the regime. Among the central arguments, the documentation emphasizes that the project was not underway at the time of the application, unlike what happened with the Marian project. Mariana's case marked a key precedent. That project, located in the Salar de Llullaillaco, also in Salta, was left out of the RIGI after the national government rejected its incorporation in 2025. At that time, the Minister of Economy, Luis Caputo, maintained that the undertaking did not meet the temporary requirements of the regime because "it was already in execution at the time of applying for the benefit."
Mariana is located about 430 km from the capital of Salta, about 8 to 10 hours of travel by road, and is located 95 km from Tolar Grande, at 3,750 meters above sea level. That field was Ganfeng's first attempt to enter the RIGI and ended up discarded after the 2025 decision.
Given this background, the company now identifies several risk factors for the evaluation of Pozuelos Pastos Grandes: Mariana's previous rejection, the political discussion generated by the RIGI in different sectors and the volatility of international lithium prices, which may all influence the evaluation of the financial sustainability of the project.
The role of the RIGI, the mining bet and the weight of Salta for Ganfeng
It is believed that Pozuelos Pastos Grandes could become one of the emblematic projects of the RIGI if it passes the technical and political review at the national level. In its internal analysis, Ganfeng rates the probabilities of approval as "moderately high," as long as the project’s design and operation strictly abide by the deadlines and conditions required by the RIGI.
In addition to the magnitude of the investment and the projected production volume, the company highlights Salta's strong mining orientation and the network of projects it already has in the province. In Argentina, Ganfeng has five initiatives under its orbit: Cauchari in Jujuy and, Mariana, Pozuelos Pastos Grandes, and Incahuasi in Salta, and Sal de la Puna projects.
In parallel to the advance of Pozuelos Pastos Grandes, in Salta initiatives are being promoted so that lithium mining makes a leap towards associated industrial activities, articulating the production of the Puna with energy and infrastructure investments. In this context, the definition of whether or not PPG will enter the RIGI will be closely followed by the mining sector and by companies that analyze large-scale projects in the region. As a DLE Integrated Solution provider, BICHEM will continuously follow the development of Pozuelos Pastos Grandes project, and we stand ready to conduct technical cooperation regarding DLE with relevant companies.
