Argentina Lithium & Energy Corp (TSX-V:LIT, OTCQX:LILIF) announced that it has entered into a memorandum of understanding with Xi’an Lanshen New Material Technology to advance development of its Rincon West lithium brine project in Argentina.
The non-binding MOU outlines a framework under which Lanshen would deploy its direct lithium extraction (DLE) technology, pilot plant systems and engineering support to advance Rincon West toward completion of a feasibility study and potential future commercial production.
The agreement is intended to support the evaluation of a lithium carbonate operation with an initial capacity of 5,000 tonnes per year, with potential expansion to 15,000 to 20,000 tonnes annually.
Under the proposed collaboration, Lanshen would provide DLE pilot platforms, engineering packages, technical personnel, process design and equipment quotations required for feasibility-level engineering.
In return, Lanshen’s contributions, including technical services, equipment and studies, could qualify for equity participation in Argentina Lithium’s wholly owned subsidiary, Argentina Litio y Energia S.A., through a staged earn-in structure.
Nikolaos Cacos, Argentina Lithium CEO, described the MOU as a “pivotal turning point” for the company.
“By aligning ourselves with a global DLE technology leader capable of delivering pilot systems, engineering, and commercial-scale solutions, we are dramatically strengthening the technical foundation and strategic positioning of Rincon West,” Cacos said.
“The combined capabilities of both organizations will accelerate our development timeline, reduce technical risks, and unlock the full long-term value of our lithium brine assets within the Lithium Triangle."
Zhijun Feng, Lanshen president, explained that the firm’s DLE technology suite has been developed over more than a decade to deliver high-lithium-recovery, low-impurity, environmentally efficient extraction solutions.
“Our team looks forward to bringing our engineering capabilities and industrial experience to the Rincon West Project, supporting Argentina Lithium in advancing toward feasibility and, ultimately, commercial production,” Feng said.
The MOU is binding only with respect to confidentiality and certain legal provisions and will remain in effect for 12 months.
The parties plan to negotiate a definitive collaboration agreement covering commercial terms, including technology exclusivity, governance, financing structures and intellectual property licensing.
Argentina Lithium said it will continue to manage environmental permitting, community engagement, hydrogeological and metallurgical work, and integration of the DLE process into the project’s overall engineering plan.
Canadian-listed shares of Argentina Lithium added 4.6% in Monday morning trading at C$0.12.