NIO’s Exit Raises Questions on Funding and Future of San Jorge Lithium Project
Greenwing Resources confirms NIO Inc.'s subsidiary did not exercise its call option on Andes Litio SA, while advancing exploration at the San Jorge Lithium Project in Argentina.
- NIO's call option on 20-40% of Andes Litio SA expired unexercised
- San Jorge Lithium Project holds 1.07Mt Lithium Carbonate Equivalent resource
- Greenwing continues capital raising to fund further exploration
- Second drilling program planned to target promising mineralisation
- Future funding options for the project remain under consideration
NIO Call Option Expires Without Exercise
Greenwing Resources Ltd (ASX:GW1) has announced that the call option granted to Blue Northstar Limited, a wholly owned subsidiary of Chinese electric vehicle giant NIO Inc., has expired without being exercised. The option, which allowed NIO to acquire between 20% and 40% of Andes Litio SA for a price between US$40 million and US$80 million, lapsed on 27 May 2025 as per the terms of the original agreement signed in September 2022.
This development marks a significant moment for Greenwing, as it retains full control over Andes Litio SA, the company holding rights to the San Jorge Lithium Brine Project in Argentina. The project is strategically located in one of the world’s premier lithium jurisdictions, covering 15 granted exploration licenses and an additional 36,000 hectares surrounding the salar.
San Jorge’s Growing Lithium Potential
San Jorge has already demonstrated promising potential. The initial drilling campaign completed in 2024, consisting of six holes, yielded a maiden Mineral Resource Estimate of 1.07 million tonnes of Lithium Carbonate Equivalent (LCE). Of this, 670,000 tonnes are classified as Indicated resources, representing a substantial 62.7% of the total, with the remainder inferred. Importantly, exploration results suggest that the resource remains open along the west, north, and at depth, indicating room for expansion.
Capital Raising and Next Steps
Greenwing is currently engaged in a capital raising initiative announced in April 2025. The funds raised will support a comprehensive review of all exploration data to date, aiming to optimise the upcoming second drilling program. This next phase will focus on targeting the more prospective mineralisation zones within the salar, potentially unlocking further value.
While the company is actively progressing exploration, it is also weighing its options regarding future funding requirements for the San Jorge project. The lapse of NIO’s call option removes a potential strategic investor, but Greenwing’s ongoing efforts suggest confidence in advancing the project independently or through alternative partnerships.
Strategic Outlook
Greenwing Resources continues to position itself as a key player in critical minerals, with lithium and graphite projects spanning Madagascar and Argentina. The San Jorge Lithium Project remains central to its ambitions to supply electrification markets and develop advanced materials for a cleaner future. The company’s ability to secure funding and deliver on exploration milestones will be critical in the coming months.
Bottom Line?
With NIO stepping back, Greenwing’s next moves on funding and drilling will define San Jorge’s trajectory.
Questions in the middle?
- Will Greenwing secure new strategic partners or investors following NIO’s exit?
- What are the timelines and targets for the upcoming second drilling program?
- How will the capital raising impact Greenwing’s project development and valuation?
