Ganfeng Lithium Group (01772) intends to subscribe for no more than $180 million in LAR convertible bonds.

Ganfeng Lithium Group (01772) announced that it convened the 19th meeting of the sixth board of directors on August 21, 2026, and approved the proposal regarding Ganfeng International's subscription to the convertible bonds issued by LAR. Ganfeng International agreed to subscribe to LAR's 6-year convertible bonds with its own funds, with the subscription amount expected to not exceed $180 million. Lithium Argentina AG is an emerging producer of lithium carbonate registered in Switzerland, with products primarily used in lithium-ion batteries and electric vehicles. The company was formerly known as Lithium Americas Corp. LAR is listed on both the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE). Ganfeng International holds a 9.7% equity stake in LAR. The company operates the Cauchari-Olaroz lithium brine project in Argentina jointly with LAR. The announcement stated that this transaction will further deepen the long-term strategic partnership between the company and LAR, which is beneficial for enhancing LAR's capital allocation capability and providing funding support for the joint projects of both parties. At the same time, the convertible bonds possess both debt and equity characteristics, allowing the company to receive stable interest income during the holding period, and if conversion into shares is implemented in the future, it will help to establish a deeper strategic benefit community and enhance the stability and synergy of the cooperation between both parties. This transaction may result in certain cash outflows for the company, but it will not have a significant impact on the company's main business and cash flow. LAR owns multiple high-quality lithium resource mines, with good performance and debt repayment capabilities; the investment risk is controllable, and this transaction does not harm the rights and interests of the company or its shareholders, especially minority shareholders.