Lithium Argentina soars on Q2 results, sector rally

Lithium Argentina AG (TSX, NYSE: LAR) soared 31% on Monday afternoon 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 company delivered continued operational improvements in the second quarter, keeping us firmly on track to meet full-year production guidance,” Lithium Argentina CEO Sam Pigott said in a release on Monday. “At Cauchari-Olaroz, production reached more than 85% of capacity, with [lower] costs…supported by higher volumes and targeted cost-reduction initiatives.”

Lithium rally

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 compared to prices since April. Lithium carbonate prices remain in a slump after losing about 85% of their value since 2022.  

Lithium Argentina’s share price jumped to $5.06 apiece at mid-afternoon on Monday in Toronto, its highest level since December following the Q2 2025 earnings release. It has a market capitalization of about $821.5 million. The stock has traded in a 12-month range of $2.36 to $5.50. 

Lithium Argentina holds a 44.8% 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, at $6,098 per tonne of lithium carbonate, compared to $6,634 per tonne 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 about $7,400 per tonne of lithium carbonate sold. The realized price, the company says, was impacted by the continued decline in global lithium prices during the quarter.

Growth plans

The Lithium Argentina-Ganfeng partnership is looking to expand the lithium carbonate production at Cauchari-Olaroz with an additional capacity of 40,000 tonnes per year.

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 (PPG) basins. The PPG projects are at the feasibility stage and have an estimated total capacity of 150,000 tonnes per year.

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.