Calgary: Lithium Chile’s proposed US$175 million sale of its Arizaro lithium project in Argentina to China Union Holdings continues to face regulatory attention, highlighting the growing scrutiny surrounding Chinese investment in critical minerals. Lithium Chile’s shareholders approved the transaction with 96% support in May 2026, while the companies later extended the deal’s deadline to August 20 to allow additional time for China Union to secure approval to transfer the funds.
The transaction involves the sale of Lithium Chile’s Argentine subsidiary, Argentum Lithium S.A., which holds the Arizaro project in Argentina’s Salta province. The company has said that required regulatory filings have been made in Canada and China, with approvals remaining an important part of the closing process.
Canada’s scrutiny reflects the strategic importance of lithium and other critical minerals. Ottawa has previously subjected Chinese investments in Canadian critical-mineral companies to national-security reviews, including an earlier investment in Lithium Chile that resulted in an order for the Chinese investor to divest.
Lithium Chile and China Union amended their agreement in May, including provisions addressing potential government intervention and post-closing regulatory issues. The companies subsequently extended the transaction deadline by 60 days.
The deal underscores the increasingly complex intersection of lithium development, Chinese investment and national-security policy as governments seek greater control over strategic mineral supply chains.