Lithium Americas (Argentina) Q2 Earnings Call Highlights

Key Points

• Cauchari-Olaroz remains on track: The operation averaged 95% of design capacity in the first half and is maintaining full-year production guidance of 35,000–40,000 tonnes, with expected stronger production and sales in the second half.
• Strong financial performance: Second-quarter adjusted EBITDA was approximately $110 million, with a 70% cash operating margin, $141 million in free cash flow from operations and joint-venture net debt reduced to $142 million.
• Expansion and funding advancing: Lithium Argentina is preparing a Stage 2 expansion that could initially add 10,000 tonnes per year, while new debt facilities provide $220 million in joint-venture financing; the company is also awaiting RIGI approval for Pastos Grandes.

Lithium Americas (Argentina) NYSE: LAAC said its Cauchari-Olaroz operation maintained strong production, low operating costs and cash generation in the second quarter of 2026, while the company advanced plans for a phased expansion and continued work on its Pastos Grandes project.

Chief Executive Officer Sam Pigott said Cauchari-Olaroz averaged 95% of design capacity during the first half of the year and remains on track to meet full-year production guidance of 35,000 to 40,000 tonnes. The operation included a planned shutdown in the second quarter to support optimization and debottlenecking work, but Pigott said no additional planned maintenance shutdowns are expected in the second half.

“We expect production to be very strong throughout the back half of the year,” Pigott said during the company’s earnings call. He added that sales should increase in the second half as timing differences between production and sales are resolved.

Margins and Cash Flow

Cauchari-Olaroz generated about $110 million in adjusted EBITDA during the second quarter, up 4% from the first quarter, according to Pigott. Realized lithium prices averaged approximately $19,500 per tonne, while year-to-date cash operating costs averaged about $5,600 per tonne.

Second-quarter costs were modestly higher because of the planned shutdown, higher energy costs and the impact of a stronger Argentine peso. Still, Pigott said the company continues to expect operating costs in the mid-$5,000-per-tonne range through the rest of 2026.

The operation’s cash operating margin reached 70% in the quarter. Pigott said the $110 million in adjusted EBITDA translated into $141 million of free cash flow from operations, partly reflecting a working-capital drawdown related to first-quarter sales collected during the second quarter.

Net debt at the joint-venture level fell by $114 million during the quarter, declining to $142 million from $256 million. The operation also made distributions to its joint-venture partners, with total year-to-date distributions reaching $160 million and Lithium Argentina’s share totaling $75 million.

• Second-quarter adjusted EBITDA: approximately $110 million
• First-half adjusted EBITDA: more than $200 million
• Year-to-date cash operating costs: approximately $5,600 per tonne
• Second-quarter cash operating margin: 70%
• Second-quarter free cash flow from operations: $141 million

Liquidity and Financing

The company said Cauchari-Olaroz completed two new unsecured debt facilities totaling $220 million at the joint-venture level. This includes a $170 million, three-year facility that closed in early August and carries a variable interest rate currently below 5%, according to Pigott.

At the corporate level, Lithium Argentina ended the quarter with $100 million in cash and $230 million in total liquidity. The liquidity figure includes a $130 million undrawn six-year debt facility from Ganfeng priced at SOFR plus 2.5%, or about 6% at current rates.

The company also received an additional $27 million in distributions from Cauchari-Olaroz after the quarter ended. Pigott said the operation had about $300 million of liquidity and that, if lithium prices remain near current levels, distributions could be similar to or potentially higher than those in the first half.

At a lithium price of $20,000 per tonne, management estimates Cauchari-Olaroz could generate approximately $460 million of adjusted EBITDA in 2026 on a 100% basis.

Expansion Plans and Project Development

Lithium Argentina is preparing a Stage 2 expansion at Cauchari-Olaroz after receiving approval under Argentina’s RIGI investment-incentive program in the second quarter. The company expects to release its Stage 2 scoping study around the end of the third quarter.

Pigott said the company and Ganfeng are aligning on a plan that can be executed promptly and that will include further details on early works. Those activities include drilling additional wells, engineering and debottlenecking work at the existing plant.

The proposed expansion is being evaluated as a modular direct lithium extraction facility with initial capacity of 10,000 tonnes per year, representing the first phase of a broader 45,000-tonne-per-year expansion. Some infrastructure for the project is expected to draw on what was built for Stage 1, Pigott said.

For the existing operation, the company is considering two or three additional wells over the next six to eight months. Pigott said a typical well costs less than $3 million, or approximately $2.5 million, and that the investment could support an additional 2,000 to 3,000 tonnes of production. The company expects modest capital spending over the next six to 10 months, with results expected to flow through in 2027 and 2028.

At the Pastos Grandes project, or PPG, the company is awaiting RIGI approval after submitting its application in the first quarter of 2026. Pigott said approval is expected by year-end and would be an important milestone for financing discussions, including potential minority strategic partners.

Carbon Footprint and Listing Review

The company also highlighted an independent verification of Cauchari-Olaroz’s 2025 product carbon footprint. The operation reported 1.4 tonnes of carbon dioxide equivalent per tonne of lithium carbonate equivalent on a Scope 1 and Scope 2 basis under ISO and Greenhouse Gas Protocol standards.

Approximately 97% of energy used in the production process comes from solar power, Pigott said.

Finally, Lithium Argentina said it is evaluating a potential secondary listing on the Australian Securities Exchange. Pigott said an ASX listing could complement its NYSE listing as the company seeks to broaden its investor base and increase global market visibility.

About Lithium Americas (Argentina) (NYSE:LAAC)

Lithium Americas (Argentina) is a publicly traded corporation on the New York Stock Exchange under the symbol LAAC, created to advance the Cauchari-Olaroz lithium brine project in Argentina’s Jujuy Province. The company is focused on the exploration, development, and eventual production of battery-grade lithium carbonate, a critical input for electric vehicle batteries and grid-scale energy storage systems. Utilizing proprietary brine extraction and processing techniques, Lithium Americas (Argentina) aims to deliver a reliable supply of lithium into global clean-energy supply chains.

The Cauchari-Olaroz project lies at over 4,000 meters above sea level within the Lithium Triangle, a region spanning Argentina, Bolivia and Chile that contains some of the world’s richest lithium reserves.

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