The Swiss-based mining company Lithium Argentina (LAR) plans to increase its lithium production capacity in Argentina to 235,000 tons of lithium carbonate equivalent by 2038.
LAR stated that the company intends to achieve this production target through a series of phased expansion projects and the development of a new greenfield project - Pozuelos-Pastos Grandes (PPG). PPG will become the largest single lithium project in Argentina. LAR will significantly expand its current annual production capacity of 40,000 tons over the next 12 years.
The expansion plan will make LAR the largest lithium producer in Argentina, with output exceeding that of Rio Tinto. Different from LAR's focus on Argentina, Rio Tinto invests in multiple assets in at least three countries - Argentina, Chile, and Canada.
LAR is expected to release a more detailed construction schedule in mid-2026. Currently, the flagship project Cauchari-Olaroz has an annual production capacity of 40,000 tons and plans to expand by 45,000 tons per year. It plans to complete the construction of PPG before its 2029 commissioning. PPG is expected to have an annual production capacity of 25,000 tons when it commences production in 2029, and then increase to 50,000 tons in 2031, 100,000 tons in 2034, and reach the designed capacity of 150,000 tons per year in 2038.
The Cauchari-Olaroz expansion project and PPG are both awaiting approval for inclusion in the Argentina Large Investment Incentive Program (Rigi). Rigi offers a number of benefits, including tax and royalty exemptions, as well as 30 years of legal stability guarantees, meaning no president can revoke the incentive policy for the next 30 years.
The company also stated that it plans to produce 35,000–40,000 tons of LCE in 2026, which is consistent with the design capacity of Cauchari-Olaroz. The project achieved 97% of its design capacity in the fourth quarter, with a production of 9,700 tons, a 14% increase compared to the previous quarter.
LAR previously announced a total production of 34,100 tons in 2025, generating revenue of $272 million. Production increased by 34.2% compared to 25,400 tons in 2024.
In 2025, the company suffered a net loss of $76.8 million, while the loss in 2024 was $15.2 million. The increase in losses was mainly due to the company's recognition of a $26 million loss carried over from 2024.
The price rose significantly in the first quarter
LAR expects that, driven by the continuous rise in lithium prices, the average selling price in the first quarter of 2026 will nearly double compared to the previous quarter.
The company's revenue in the fourth quarter was $92 million, with the average realized price of lithium carbonate at $9,049 per ton. With tight supply in China and strong demand for energy storage systems (ESS), the company expects the average realized price in January-March 2026 to rise to approximately $17,000 per ton.
LAR expects that by 2030, global ESS demand will drive demand for over 1 million tons of LCE per year, accounting for 30–40% of global lithium demand.
As the projects approach their design capacity, the company has further reduced production costs. The operating cost in the fourth quarter was approximately $5,600 per ton. According to the company's latest performance presentation materials, this makes LAR one of the lowest-cost lithium chemicals producers in the world.
