Core Viewpoint - Ganfeng Lithium is planning to integrate and develop lithium brine assets in Argentina through a joint venture with Lithium Argentina AG, aiming to enhance its resource supply chain amid a downturn in the lithium industry [1][3]. Group 1: Asset Integration - Ganfeng Lithium's subsidiary, Ganfeng International, will collaborate with LAR to integrate Millennial Lithium Corp, injecting three lithium brine assets into a joint venture called the PPGS lithium brine project [1][2]. - After the integration, Ganfeng International and LAR will hold 67% and 33% of Millennial, respectively, and will jointly manage the PPGS project, which aims for an annual production capacity of 150,000 tons of lithium carbonate equivalent (LCE) [2]. Group 2: Financial Support and Sales Agreement - As part of the transaction, Ganfeng Lithium may provide up to $130 million in financial support to LAR, secured by LAR's equity in the integrated Millennial [2]. - LAR will commit to an annual sales agreement, providing Ganfeng Lithium with 50% of its sales rights or 6,000 tons of LCE, whichever is lower [2]. Group 3: Industry Performance and Company Outlook - The lithium industry has entered a downturn, with Ganfeng Lithium experiencing significant revenue declines, reporting a 21.16% drop in revenue to 32.972 billion yuan and a 75.87% decrease in net profit to 4.947 billion yuan in 2023 [4]. - In 2025, Ganfeng Lithium anticipates a net loss of 300 million to 550 million yuan, a reduction in losses compared to the previous year [4][5]. - The company attributes its losses primarily to falling sales prices of lithium salts and lithium battery products, which have impacted overall performance [5]. Group 4: Industry Self-Regulation - The China Nonferrous Metals Industry Association's lithium division has called for self-regulation within the industry to prevent unhealthy competition and ensure a stable supply chain [6].