Patagonia Lithium accelerates Formentera Project toward 2026 pilot plant

Patagonia Lithium (ASX: PL3) advances its Formentera Lithium Brine Project in Argentina with new drilling, seismic surveys, and engineering milestones targeting a 2026 pilot plant.

Patagonia Lithium (ASX: PL3) is accelerating development at its flagship Formentera Lithium Brine Project in Argentina’s Jujuy province, with a clear roadmap toward establishing a pilot plant by 2026. Executive Chairman Phil Thomas outlined an ambitious sequence of drilling, seismic, engineering, and permitting activities that will position the company for a development decision within the next 18 months.

Advancing the Formentera Lithium Project

Located in Argentina’s prolific “Lithium Triangle,” the Formentera Project spans 19,540 hectares across two mining leases held by subsidiary Patagonia Lithium Argentina. The project sits in one of the largest depressions of the Puna plateau — a vast salar basin exceeding 500 km² — prospective for lithium and borates.

Patagonia Lithium recently commenced drilling Well 5 using a deep-capacity rig capable of reaching 600 meters at PQ diameter. This marks the start of a broader program designed to upgrade resources to measured and indicated status, a key step toward completing a Scoping Study.

Thomas confirmed that a seismic survey will soon follow to determine the salar basement depth, with geophysical data integrated into both the updated Mineral Resource Estimate (MRE) and the scoping-level engineering design.

Roadmap to pilot plant construction

By 2026, Patagonia aims to secure regulatory approval for a pilot-scale direct lithium extraction (DLE) facility. “We will complete an updated mineral resource estimate, finalize the Scoping Study, finish the drilling program with potentially two production wells, and arrange financing or subscriptions for the development of the demonstration plant,” Thomas said.

The company has completed the mass balance and flow sheet for an Ekosolve DLE demonstration plant, designed to produce approximately 1,000 tonnes of lithium annually. Engineering drawings at Class C level are already underway.

This data-driven, staged approach is intended to de-risk the resource, validate extraction technology, and attract funding for commercial-scale production.

Upcoming milestones for 2025

Before year-end, Patagonia Lithium expects to:

• Complete drilling and pumping tests for Cilon 5 and Formentera 6
• Conduct seismic and borehole magnetic resonance (BMR) surveys
• Submit permits for a 2 megalitre/day demonstration plant drawing from four wells
• Publish the Ekosolve pilot plant design

These milestones mark significant progress in advancing the Formentera Project from exploration toward production readiness.

Positioning for Market Recovery

As electric vehicle (EV) adoption continues to rise and DLE technologies enhance extraction efficiency, Patagonia Lithium is positioning itself to capitalize on the expected rebound in lithium markets.

“The combination of deeper drilling, advanced geophysics, engineered plant design, and regulatory progress provides a clear pathway from salar to production,” Thomas concluded.