Argosy Minerals has made significant strides in developing its Rincon Lithium Project in Argentina, securing a crucial 40MW power connection and executing a lithium carbonate spot sales contract, all while navigating a buoyant lithium market.
- Progress on 12,000tpa lithium carbonate project engineering and feasibility
- Secured 40MW national grid energy infrastructure for Rincon Project
- Executed lithium carbonate spot sales contract with Chinese buyer
- Strong cash position of approximately $4.26 million at year-end
- Tonopah Lithium Project in Nevada under strategic review amid US policy shifts
Engineering and Feasibility Progress
Argosy Minerals Limited continues to advance its flagship Rincon Lithium Project in Argentina, moving closer to a construction-ready stage for a 12,000 tonnes per annum lithium carbonate operation. The company has been diligently working with engineering consultants and international lithium processing specialists to complete detailed feasibility and front-end engineering design studies. These efforts aim to de-risk the project and optimise its value potential, with recent testwork validating key chemical process assumptions and operational parameters.
Notably, Argosy has identified a pathway to produce an intermediate lithium product alongside battery-quality lithium carbonate, offering flexibility to reduce capital intensity and operational risks. This nuanced approach reflects a strategic focus on delivering a scalable and profitable lithium operation aligned with market demands.
Securing Critical Energy Infrastructure
A major milestone for the Rincon Project has been the securing of a 40MW power connection from Argentina’s national grid. The Salta Electricity Distribution Company (EDESA) has completed detailed engineering and feasibility work on a medium voltage line project that will connect the Rincon site to the grid via an 8.6-kilometre transmission line linked to a local sub-station adjacent to the Altiplano Solar Facility.
This infrastructure development is pivotal, as access to reliable, grid-based power is a key barrier for many lithium projects in northwest Argentina. By tapping into national grid energy, Argosy expects to reduce operational costs, improve project economics, and enhance environmental performance by minimising reliance on diesel generation. The project’s alignment with Argentina’s renewable energy transition further positions Rincon as a low-carbon lithium asset.
Commercial Momentum and Market Context
Argosy has also executed a spot sales contract for 16.1 tonnes of lithium carbonate with Chengdu Chemphys Chemical Industry Co., Ltd, marking a tangible commercial milestone. The contract is priced against benchmark lithium carbonate prices and includes secure payment terms, underscoring confidence in the product quality and market demand.
Market conditions remain highly supportive. Lithium carbonate prices surged during the quarter, reaching over US$20,700 per tonne in China, driven by robust demand from electric vehicles and battery energy storage systems. Global EV sales grew by 20% in 2025, with China and Europe leading the charge, while battery storage demand expanded even faster. Supply constraints due to permitting delays and project restarts have further tightened the market, reinforcing the strategic timing of Argosy’s development efforts.
Financial Position and Strategic Outlook
Financially, Argosy maintains a solid footing with approximately $4.26 million in cash reserves as of December 31, 2025. The company continues to manage costs prudently while exploring strategic partnerships, off-take agreements, and funding opportunities to support the Rincon Project’s next development phases.
Meanwhile, the Tonopah Lithium Project in Nevada remains under review. Given recent US government initiatives to bolster domestic critical mineral production, Argosy is reassessing exploration strategies and budget allocations to enhance this asset’s value proposition.
Community and Sustainability Commitments
Argosy’s corporate social responsibility efforts continue to focus on supporting local communities in Argentina’s Salta Province. The company emphasises job creation, training, and local procurement to foster sustainable economic development, securing strong community backing for the project’s long-term viability.
Bottom Line?
With energy infrastructure secured and market momentum building, Argosy’s Rincon Project is poised for critical development milestones in 2026.
Questions in the middle?
- When will Argosy make its final investment decision for the Rincon 12,000tpa project?
- How will the company structure strategic partnerships and funding to accelerate development?
- What exploration plans and timelines will Argosy pursue for the Tonopah Lithium Project amid evolving US policies?