Patagonia Lithium grows Formentera resource by 319%, boosting project potential in Argentina

Patagonia Lithium boosts Formentera resource by 319%, confirming it as one of Argentina’s top undeveloped lithium brine projects, with major gains in yield, concentration, and future exploration potential.

Patagonia Lithium (ASX: PL3) has significantly upgraded the inferred and indicated resource estimate for its Formentera Lithium Brine Project in northern Argentina, reporting a 319% increase in total lithium carbonate equivalent (LCE) resources.

The updated resource now totals 551,400 tonnes of LCE, with average concentrations of 294 mg/L of lithium and 894 mg/L of magnesium, translating to 103,700 tonnes of contained lithium metal.

A key highlight from the announcement is the sharp rise in specific yield—a critical metric for lithium brine extraction—which increased by 248%, from 4.8% to 11.85%, placing it among the highest yields in the region.

The average lithium concentration also rose by 13%, going from 264 parts per million (ppm) to 294 ppm, indicating improved resource quality.

On the back of the news, Patagonia Lithium’s share price climbed 5.26%, trading at $0.040 AUD as of 11:25 a.m. AEST on July 14.

“This resource estimate confirms Formentera as one of the best undeveloped lithium projects in Argentina,” said Executive Chairman Phillip Thomas. “Each major parameter—lithium metal, specific yield, and elevated lithium concentration—has exceeded our expectations, reinforcing the value of this asset.”

Thomas added that exploration upside remains high, noting that only four wells have been drilled to date. The company plans to expand drilling in the high-porosity southern zone and the deeper areas of the Cilon concession, targeting depths of up to 600 meters.

Next steps include drilling well five at Cilon, completing the application for a demonstration plant, and incorporating new data into the upcoming Scoping Study.

Patagonia Lithium currently operates two flagship lithium brine projects in the Salar de Jama—Formentera and Cilon—in Jujuy Province, as well as Tomas III in the Inchahuasi Salar in Salta Province, Argentina.

Argentina’s Lithium Market Share Set to Double by 2027

Global lithium extraction is projected to grow by 13.9% annually, reaching over 1.8 million tonnes of LCE by 2027. While Australia will remain the top supplier, its global market share is expected to drop from 36% in 2024 to 31% in 2027 due to lower lithium prices and temporary production cuts.

Meanwhile, Argentina is poised to double its global lithium market share, exceeding 10% by 2027, as a new wave of large-scale brine operations come online. Despite industry-wide caution stemming from low lithium prices in 2024 and 2025, high-potential projects like Formentera could play a key role in the country’s growing role in the energy transition.