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Lithium Americas (Argentina) (NYSE:LAAC) reported a stronger first quarter for 2026, with Chief Executive Officer Sam Pigott saying the company’s Caucharí-Olaroz lithium operation continued to run near design capacity while beginning to generate “meaningful cash flow.”
On the earnings call, Pigott said Caucharí-Olaroz produced about 9,700 tonnes of lithium carbonate during the quarter, averaging approximately 97% of nameplate capacity. He said the operation has been able to sustain that level for the past two quarters.
Operating cash costs declined to just under $5,400 per tonne in the quarter, a level Pigott said makes Caucharí-Olaroz “one of the lowest cost lithium operations globally.” Realized prices rose to just under $17,000 per tonne in the first quarter from just over $9,000 per tonne in the fourth quarter of 2025.
The combination of higher realized prices, stable production and lower costs drove adjusted EBITDA to $106 million in the quarter, compared with $30 million in the prior quarter. The adjusted figure primarily excludes non-cash foreign exchange fluctuations, according to Pigott.
Caucharí-Olaroz cash flow supports balance sheet
Pigott said the project has distributed about $100 million in cash since the beginning of the year, including $48 million attributable to Lithium Argentina’s share. He said those distributions strengthen the balance sheet and demonstrate the operation’s cash-generating capacity.
Management said there is typically about a two-month lag between when sales are made and when cash is received at the operation. Pigott said the company expects more than 90% of EBITDA to convert to free cash flow this year, with that cash flow becoming more visible in the second and third quarters.
In response to a question from Canaccord analyst Anthony Taglieri, Pigott said the priority for cash generated at the joint venture would be preparing for the Stage 2 expansion, followed by additional cash distributions. He said the operation’s project-level debt profile has improved and described it as “very low cost,” with net debt running at less than 0.5 times annualized first-quarter EBITDA.
For 2026, Lithium Argentina maintained production guidance of 35,000 to 40,000 tonnes. Pigott said the guidance includes flexibility as the company optimizes production this year while considering actions to support higher sustained production in future years.
Higher lithium prices improve 2026 outlook
Pigott said the company is seeing a more constructive pricing environment, supported by stronger energy storage demand and an improved outlook for electric vehicles, including commercial vehicles. He also cited recent oil market developments and improvements in battery cost, range and charging performance.
Based on recent lithium prices of roughly $20,000 to $30,000 per tonne, Pigott said Caucharí-Olaroz could generate approximately $460 million to $630 million of EBITDA in 2026 on a 100% basis. He said those figures include the company’s current pricing discount.
During the call, BMO Capital Markets analyst Evan McCaul asked about pricing discounts. Pigott said first-quarter realized pricing reflected a 6% to 7% discount to reference prices excluding Chinese VAT. He said there is room for improvement as product consistency and quality evolve, and he noted that the longer-term objective with partner Ganfeng is to supply lithium chemicals directly to customers without going through China.
Asked by Deutsche Bank analyst Corinne Blanchard about the direction of lithium prices, Pigott declined to provide a detailed short-term forecast, but said the company’s read-through from Ganfeng is that the market is “extremely tight.” He said pricing had continued to climb since the first quarter and that management felt “very good” about the second quarter and the rest of the year.
Stage 2 and PPG remain growth priorities
Pigott said the company made “substantial progress” during the quarter on its Stage 2 development plan at Caucharí-Olaroz, which targets an additional 45,000 tonnes per year of production capacity. One key milestone is approval of the company’s RIGI application, which Pigott said was filed late last year and could be approved as early as this quarter.
Environmental permitting remains another key step. Pigott said the process is supported by an updated resource estimate and a basin-wide hydrogeological model. In the Q&A, he said a full final investment decision depends on environmental permits, which he described as “really a 2027 event,” although RIGI approval could help accelerate the permitting process. He said 2026 capital spending related to accelerating Stage 2 would be “fairly immaterial.”
Pigott also discussed PPG, the company’s longer-term growth platform in Argentina. He said a scoping study released late last year outlined a phased development plan targeting up to 150,000 tonnes of lithium carbonate production over time, beginning with an initial 50,000-tonne phase.
The company is working with Ganfeng on the possibility of bringing in a minority investor at the project level. Pigott said the company has been pleased with the level and breadth of interest from global groups seeking exposure to large-scale, low-cost lithium brine supply. He said the combined PPG assets have a historical book value of $1.7 billion based on investments made, while the development plan shows a range of net present value estimates of $6 billion to $8 billion.
Cost profile, geopolitical risks and listings
Pigott said the company is monitoring the situation in the Middle East, but has seen limited impact so far on costs or the availability of key supplies such as soda ash. He said Caucharí-Olaroz relies primarily on solar evaporation, does not use an energy-intensive process, has minimal diesel requirements and does not require sulfuric acid. Direct diesel consumption represents less than 3% of direct operating costs, he said.
Asked by HSBC analyst Ishan Jain whether costs could fall further, Pigott said the $5,400-per-tonne figure reflected the company’s existing cost structure at nameplate capacity. He said there may be longer-term opportunities to improve recoveries and optimize the plant, but management is maintaining that cost assumption for now.
The company is also considering a secondary listing on the Australian Securities Exchange. Pigott said the potential ASX listing is intended to broaden market visibility and the investor base, not to raise capital. He said the company is not planning an IPO or financing in connection with the listing and has no plans to remove its New York Stock Exchange listing. Asked about the Toronto Stock Exchange listing, Pigott said the company is still evaluating the pros and cons and would provide updates in the coming months.
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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