Triple Flag Acquires Royalty on Tres Quebradas (3Q) Lithium Brine Project

Triple Flag

Canadian royalty firm Triple Flag Precious Metals has secured a 0.5% revenue royalty on the Tres Quebradas (3Q) lithium project in Catamarca, Argentina, for $28 million. This acquisition highlights the growing importance of securing lithium resources, driven by the surge in global demand for battery-grade materials.

The royalty agreement grants Triple Flag a share of the total revenue generated from the sale of lithium salts produced at the 3Q site. The seller, Lithium Royalty Corp, retains a 0.9% royalty on the project, maintaining its stake in the promising venture.

3Q Lithium Project Overview

The 3Q lithium project is fully owned and operated by Zijin Mining, a major Chinese precious metals producer. Currently under construction, the project is expected to begin operations in the second half of 2025, with an initial production capacity of 20,000 metric tonnes (t) per year of battery-grade lithium carbonate.

Zijin Mining acquired the 3Q project from Neo Lithium in 2022 for $770 million and has since expressed plans to expand its capacity to between 40,000-60,000 t/yr to meet rising global demand. The 3Q project employs a conventional brine extraction process involving evaporation and precipitation, with its process plant located in Fiambalá, Argentina. The project is fully permitted, positioning it as a reliable source of high-purity lithium carbonate for the EV and renewable energy industries.

Strategic Significance

The acquisition by Triple Flag underscores the increasing focus on royalty investments in critical minerals such as lithium, which are essential for electric vehicle (EV) batteries and renewable energy storage. This deal also highlights Argentina's growing prominence as a key player in the global lithium supply chain, alongside other major lithium-producing nations.