Lithium Americas Corp. announced that it has signed a Co-operation Agreement with POSCO. Pursuant to the Agreement, POSCO will locate its next generation lithium extraction pilot plant at Lithium Americas' Cauchari-Olaroz project (Project) in the province of Jujuy, Argentina.

The pilot plant is expected to be operational at the Project during the fourth quarter of 2014. The Co-operation Agreement assigns business responsibilities between POSCO and Lithium Americas, whereby POSCO will be responsible for the development of the technology and management and operation of the pilot plant, while Lithium Americas will provide resources in the form of brine and local support. The Agreement is limited to pilot plant operations, but provides for an exclusivity period in the future to negotiate terms of a commercial stage operation.

Costs of building, delivering and operating the pilot plant will be borne by POSCO, which also retains 100% ownership of the pilot plant.