Baker McKenzie has advised Ganfeng Lithium Group Co., Ltd. ("Ganfeng Lithium Group" or "Company") on the acquisition of 100% equity interest in Argentina-focused lithium explorer Lithea, through its wholly owned subsidiary GFL International, for up to USD 962 million. 

Lithea engages in the acquisition, exploration and development of lithium mining rights and owns the PPG Project, which consists of the Pozuelos and Pastos Grandes lithium salt lake assets in Argentina's Salta province.

"This transaction will help the Company further strengthen the layout of upstream lithium resources, increase the company's resource self-sufficiency rate, and enhance its core competitiveness, and it complies with the Company's upstream and downstream integration and new energy vehicle industry development strategy," according to the Company's announcement. The deal does not involve any transfer of the PPG Project's mining rights, which will remain with Lithea.

A multijurisdictional team of transactional specialists worked on this transaction, led by Zhang Hong, head of the Private Equity Practice at Baker McKenzie FenXun (FTZ) Joint Operation ("Baker McKenzie FenXun") in Shanghai, working with M&A Partners Roberto Grané in Baker McKenzie's Buenos Aires office and Lewis Popoff in the Chicago office. They were also assisted by Senior Counsel Leo Zhang and Associate Mia Leung of Baker McKenzie FenXun, Shanghai, and Ezequiel Artola of Baker McKenzie, Buenos Aires.

Commenting on the deal, Ms. Zhang said: "This milestone transaction paves the way for our client to better meet the continuously growing demand for lithium as demand for new energy vehicles continues to rise. We could not have been more pleased to be able to draw on our strong cross-border transactional experience and local expertise, and bring this strategically important transaction to fruition for our client.  This deal is another example demonstrating our strong capabilities of assisting our client in complex multijurisdictional transactions with Baker McKenzie's unique "global-network, local expertise" platform."
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