- Published 2026.11.10 14:58
Signs MOU with Australia's Pursuit Minerals to develop Rio Grande Sur project
To secure 20% stake in subsidiary and long-term purchase of full 5,000 tons of phase-one output
EcoPro Innovation plans to invest up to $40 million (about 56 billion won) in an Argentine lithium mine project with Pursuit Minerals, an Australian mineral development company. The move is part of a strategy to diversify its supply chain for lithium, a critical mineral, and secure stable raw materials for cathode materials production.
According to a disclosure on the Australian Securities Exchange (ASX) and Pursuit Minerals on Nov. 9, the two companies signed a strategic memorandum of understanding (MOU) to develop the Rio Grande Sur lithium project in Salta Province, Argentina. EcoPro Innovation will inject funds to secure a stake in the project and as advance payments, and has agreed to purchase the lithium produced on a long-term basis.
The investment will be executed in two parts. First, EcoPro Innovation will invest $20 million (about 28 billion won) to acquire a 20% stake in Pursuit Minerals' Argentine subsidiary, which holds the project assets. Pursuit Minerals will retain the remaining 80% stake and operational control of the project.
Separately, up to $20 million in advance payments will be provided in stages depending on achievement of development milestones. The funds are expected to be repaid through supply of lithium derivative products once the project enters commercial production.
A long-term offtake agreement was also signed. EcoPro Innovation will exclusively purchase the entire phase-one production of about 5,000 tons per year of lithium carbonate equivalent (LCE). The purchase price will be linked to the CIF Asia lithium carbonate benchmark price of Fastmarkets, a global market research firm.
The Rio Grande Sur project is located within South America's 'lithium triangle.' According to Australia's Joint Ore Reserves Committee (JORC) standards, the salt lake is estimated to hold about 1.264 million tons of LCE resources with an average lithium concentration of 424 mg/L. Pursuit Minerals aims to start with 5,000 tons in phase one and gradually expand production to 17,500 tons per year. EcoPro Innovation has also obtained an exclusive right to negotiate for 60 days on future expansion volumes.
Pursuit Minerals estimated that a total of $156.63 million (about 219 billion won) will be needed for construction of the phase-one plant. In addition to EcoPro Innovation's investment, it plans to secure up to $120 million (about 168 billion won) in senior secured loans from third-party financial institutions.
Aaron Level, CEO of Pursuit Minerals, said in an official announcement, "It is important that we have partnered with a global leading company without giving up dominant control," adding, "This funding significantly strengthens the roadmap toward plant construction."
Kim Yoon-tae, CEO of EcoPro Innovation, said, "We have been analyzing various options in the upstream sector to diversify our lithium supply chain," and added, "Based on the technical progress of Rio Grande Sur, we will solidify continuous strategic and commercial cooperation."
The MOU is not legally binding on commercial terms. The two companies plan to conduct technical, financial, and legal due diligence and sign a final definitive agreement by Dec. 31, 2027.
※ This article is an AI translation of the Korean original published by Korea Credit News; it was checked by automated quality guards and published by the English edition desk.
