Chinese lithium manufacturer Ganfeng Lithium has invested $160 million in Canada-based lithium projects developer Lithium Americas.

With the deal, Ganfeng Lithium will increase its current 37.5 percent interest to 50 percent, forming a 50/50 joint venture with Lithium Americas to develop the Caucharí-Olaroz project in Argentina.

Following the transaction, Lithium Americas will remain fully financed to accelerate the project to production under the current 25,000 tonne per annum (tpa) lithium carbonate development plan.

Currently, the companies are working on a feasibility study to increase initial production capacity from 25,000 tpa to 40,000 tpa of lithium carbonate. Moreso, construction activities at the project remain on track, with first production expected in the second half of 2020.