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Canada reviews Lithium Chile's $175M Argentina sale to China Union
Ottawa issued a notice under the Investment Canada Act, saying it has reasonable grounds to believe the deal could be injurious to national security.
Mining.com reports that Canadian junior Lithium Chile and China Union Holdings face a potential national security review of their $175 million transaction for Lithium Chile’s Argentine subsidiary, Argentum Lithium, and its interest in the Salar de Arizaro project.
According to the outlet, the Canadian director of investments issued a notice under Subsection 25.2(1) of the Investment Canada Act, which can lead to an additional review of certain non-Canadian investments on national security grounds. China Union agreed in December 2025 to acquire all outstanding shares of Argentum Lithium, and it also still needs outbound direct investment approval from Beijing.
Lithium Chile is contesting Ottawa’s jurisdiction. The company told Canada’s Innovation, Science and Economic Development Canada on Jan. 7 that Argentum is not a Canadian company and has no assets, employees, or place of business in Canada, the outlet said, adding that Lithium Chile received no response before the notice was issued and plans to seek legal remedies.
The scrutiny comes after Prime Minister Mark Carney’s January visit to Beijing, during which Canada and China announced a new strategic partnership and an economic and trade cooperation roadmap aimed at improving two-way investment, including in sectors such as energy and agriculture, Mining.com reported. The Salar de Arizaro is located in Argentina’s Salta province, and Lithium Chile’s July 2024 prefeasibility study outlined 4.122 million t.