Lithium Americas says company split into two due to US-China tensions
- Mining firm’s executive vice chair said it needed to cut ties with China’s Ganfeng Lithium Group to build the Thacker Pass project in Nevada
- The US and its allies have cracked down on Chinese investment in mining as they push to compete with Beijing for access to critical minerals
The mining company announced a plan in November to separate its Argentine and North American units into two separate entities.
If approved by shareholders, the split would effectively distance it from one of its top shareholders, Ganfeng Lithium Group Co., a Chinese producer of the white, silvery metal. Ganfeng partnered with Lithium Americas in 2017 to help advance the project in Argentina.
Lithium Americas has since applied for funding from the US Department of Energy, which has allocated hundreds of millions of dollars toward battery-metals projects.
“What makes it problematic, optics wise – and optics matter – is when the beneficial owners of those Department of Energy funds are Chinese shareholders,” Kanellitsas told an audience of investors and industry members at Canaccord Genuity’s annual metals and mining conference in Palm Desert, California.
“You can only imagine a press release saying here, ‘Lithium Americas and Ganfeng announce a new joint venture’ – it just would not fly at all, especially given what we’re trying to accomplish here in North America.”
