Canada-based American Lithium has increased its investment in the Falchani lithium project in Peru by 22%, reaching a total of $847m. 

The decision follows a ruling by the Peruvian Supreme Court in favour of its subsidiary, Macusani Yellowcake, in a legal dispute over 32 mining concessions, as reported by Reuters. 

The court unanimously rejected claims from INGEMMET and MINEM with respect to ownership of the concessions, clearing the path for further development. 

Reuters quoted Macusani Yellowcake general manager Ulises Solis as saying that the additional funds will facilitate the construction of a refinery at the project site in Puno's Andean region. 

Construction is now set to commence in 2027, with battery-grade lithium carbonate production anticipated post-2028. 

With the legal issues resolved, American Lithium is engaging with potential investors from Peru and abroad, including from Germany, to advance the project. 

Peru's mining minister is scheduled to meet with company shareholders on 7 October 2025 to discuss the project's progress.

The Falchani site, located on the Macusani Plateau in the province of Carabaya, Puno, Peru, is the sixth-largest hard rock lithium deposit in the world 

A preliminary economic assessment (PEA) filed in March 2020 confirmed the project's potential for long-term lithium production. 

It estimated an annual output of 63,000 tonnes of lithium concentrate over 33 years. 

The project’s base case capital cost was projected at $1.97bn, over the life of the mine. 

In 2023, American Lithium received approval from the Peruvian government to explore further lithium reserves near its current operations. 

This licence extended American Lithium's exploration rights, supporting its strategic expansion within the region.