Lithium Argentina (LAR) and Ganfeng Lithium have entered definitive agreements to establish a joint venture consolidating three lithium projects in Salta, Argentina, the companies said Monday.

Ganfeng Lithium will hold a 67% stake in the PPG joint venture, with Lithium Argentina holding the remaining 33%. The partners will jointly fund the venture based on their ownership interests, with Ganfeng's team in Salta serving as operator, the companies said.

Separately, Ganfeng has agreed to invest $180 million in Lithium Argentina through a six-year unsecured convertible note bearing a 4% coupon, the companies said.

Lithium Argentina expects to use the investment proceeds and cash on hand to fully repay its $259 million convertible debt due January 2027, according to the companies.

The PPG joint venture is expected to be completed in September, the companies said.