Ganfeng Lithium Group Co.,Ltd. (HK: 01772) has announced that its board of directors approved a proposal on August 21, 2026, authorizing its subsidiary Ganfeng International to subscribe to convertible bonds issued by Lithium Argentina AG (LAR), with an expected investment amount not exceeding $180 million.

The six-year convertible bonds will be purchased using Ganfeng International's own funds. LITHIUM ARGENTINA AG, formerly known as Lithium Americas Corp., is an emerging lithium carbonate producer registered in Switzerland. The company's products are primarily used in lithium-ion batteries and electric vehicles, and it is dual-listed on both the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE).

Ganfeng International currently holds a 9.7% stake in LAR, and the two companies jointly operate the Cauchari-Olaroz lithium brine project in Argentina. According to the announcement, this transaction will further deepen the long-term strategic partnership between the two companies, enhance LAR's capital allocation capabilities, and provide financial support for their joint projects.

The convertible bond structure offers dual benefits, as it combines both debt and equity characteristics. During the holding period, the company will receive stable interest income, and if conversion is exercised in the future, it could help build a deeper strategic community of interests while strengthening the stability and synergy of their cooperation.

While this transaction may result in certain cash outflows for the company, it will not have a material impact on the company's main business operations or cash flow. LAR possesses multiple high-quality lithium resource properties with sound performance and debt repayment capabilities, making the investment risk manageable. The transaction does not involve any circumstances that would harm the interests of the company or its shareholders, particularly minority shareholders.