American Lithium is expected to use the additional funds for the construction of a refinery at the project site.
Ulises Solis, general manager of Macusani Yellowcake, stated: “The additional funds will facilitate the construction of a refinery at the project site in Puno’s Andean region.” Construction is scheduled to begin in 2027, with battery-grade lithium carbonate production expected to start after 2028.
Located on the Macusani Plateau in Carabaya, Puno, the Falchani site is the world’s sixth-largest hard rock lithium deposit. A preliminary economic assessment (PEA) filed in March 2020 estimated an annual output of 63,000 tonnes of lithium concentrate over 33 years, with a base case capital cost of $1.97 billion over the mine’s lifespan. In 2023, the Peruvian government granted American Lithium approval to explore additional lithium reserves near its operations, expanding its exploration rights in the region.
With legal hurdles resolved, American Lithium is engaging with potential investors from Peru, Germany, and other countries to support the project’s advancement. Peru’s mining minister is set to meet with company shareholders on October 7, 2025, to discuss progress and future plans.
The Falchani project is expected to contribute to Peru’s economic growth by creating jobs and supporting the global demand for lithium, a critical component in battery production for renewable energy and electric vehicles. The initiative aligns with efforts to develop sustainable mining practices, enhancing the region’s role in the global energy transition while fostering economic development in Puno.
