A lithium carbonate futures sample is displayed at the Guangzhou Futures Exchange in Guangzhou, South China's Guangdong Province, on June 3, 2026. Photo: VCG

China Union Holdings Ltd Disclosed in a Sunday filing that it has received a notice from Canada's Foreign Investment Review and Economic Security (FIRES) authority over its investment in the Arizaro lithium brine project in Argentina, with the Canadian side saying the investment could be injurious to Canada's national security. The seller had written to the agency in advance but received no reply before the notice was issued.

According to the filing, the transaction was approved on December 22, 2025. China Union Holdings will use its own or self-raised funds of about $175 million to acquire 100 percent of the shares of Argentum Lithium S.A., thereby indirectly obtaining an 80 percent interest in the Arizaro lithium brine project in Argentina.

After the agreement was signed, the seller wrote to FIRES in January 2026, arguing that Argentum Lithium S.A. is an Argentine company, holds no Canadian assets, and has neither employees nor a place of business in Canada, and therefore does not meet the criteria contemplated under Section 25.1(c) of the Investment Canada Act. The filing said the seller had received no response to that letter before the notice arrived. 

The notice said a further review may be launched under the relevant provisions within 45 days of the date it was issued.

The company said it will work actively with the seller to communicate with and respond to FIRES. It said it is currently unable to assess the potential impact of the notice, and flagged a series of risks, including uncertainty over whether Canada will launch a review of the transaction and whether the transaction can clear such a review.

Global Times