Argosy Advances Rincon Lithium Project with Feasibility Progress and 40MW Power Deal

Feasibility Study Nears Completion as Rincon Project Advances

Argosy Minerals Limited (ASX:AGY) is methodically progressing its flagship Rincon Lithium Project in Argentina toward a final investment decision, with the Definitive Feasibility Study (DFS) nearing completion. The Company’s focus on producing solid lithium chloride as an intermediate product aims to reduce upfront capital intensity and operational risk, a strategy that has been validated by positive test work results. These tests have reinforced confidence in the process flowsheet’s robustness, which will underpin the key operating and economic parameters for the DFS.

This staged approach to project development offers flexibility, allowing Argosy to evaluate downstream processing options to battery quality lithium carbonate or hydroxide products or the potential for direct export of high-purity lithium chloride. The technical refinement and validation of the process design follow earlier reports of a 96% lithium recovery rate, a milestone that significantly de-risks the project and builds on earlier 96% lithium recovery confirmed results.

Securing Reliable Power with 40MW Energy Infrastructure

A critical milestone has been reached with the signing of an agreement with Salta Electricity Distribution Company S.A. (EDESA), which has completed detailed engineering and feasibility studies for a 40MW power supply line to the Rincon site. This medium voltage line will connect the project to Argentina’s 500kV national grid via an 8.6-kilometre transmission line, ensuring a stable and sustainable power source. Reliable grid access is expected to lower operational costs and enhance project economics, addressing a common barrier faced by lithium projects in northwest Argentina.

Lycopodium has been engaged as Owner’s Electrical Engineer to oversee the transition from design to construction readiness, while Argosy is also negotiating Power Purchase Agreements with local renewable energy providers to secure cost-efficient and low-carbon energy. This infrastructure development aligns with similar initiatives by Rio Tinto nearby, indicating a broader regional upgrade in energy access for lithium projects. The significance of this development was highlighted in earlier coverage of the 40MW medium voltage line design and engineering completion.

Funding Strategies and Market Tailwinds

Argosy is actively exploring strategic partnerships, offtake agreements, and funding options, including re-engagement with Export Credit Agencies (ECAs). The Company notes positive preliminary discussions, boosted by the recent ECA funding package announced for Rio Tinto’s Rincon Project. Completion of the DFS and regulatory approvals are expected to strengthen Argosy’s position in securing finance.

The lithium market remains supportive, with prices maintaining elevated levels driven by tight inventories, supply disruptions, and surging demand from electric vehicles (EVs) and battery energy storage systems (BESS). Benchmark Mineral Intelligence reported a 51% increase in lithium carbonate spot prices in Asia during Q1 2026, with Chinese prices reaching 73,000 yuan per tonne. This price momentum, coupled with geopolitical factors such as the Iran conflict boosting fuel prices and EV sales recovery, underpins the strategic importance of Argosy’s project.

Tonopah Project and Corporate Updates

While the focus remains on Rincon, Argosy continues to evaluate its 100% owned Tonopah Lithium Project in Nevada, USA, considering the evolving US government support for critical minerals. The Company’s financial position remains solid with approximately $3.6 million in cash reserves as of 31 March 2026, supported by ongoing cost reduction measures and revenue from recent product and asset sales.

Notably, Non-Executive Director Peter De Leo resigned during the quarter, a governance change that investors will watch alongside the Company’s development progress and funding outcomes. Argosy’s commitment to local community engagement and sustainability in Salta Province continues, reinforcing its social license to operate in the Lithium Triangle.