Dec 20 (Reuters) - Lithium Americas Corp said on Tuesday it would buy all the shares of Arena Minerals Inc it does not already own in a deal that values Arena at $227 million, giving the Canadian miner additional access to the Pastos Grandes basin in Argentina.

Prices of lithium have more than doubled this year, after an explosive rally in 2021, even after increased supply of the metal used in making batteries crucial to renewable energy transition continues to chase demand.

The deal, expected to close in the third quarter of 2023, would help integrate two neighboring projects operated by the companies in Pastos Grandes basin.

"The significant synergies between our two projects and a better understanding of the basin will enable us to advance development planning and maximize our growth pipeline in Argentina," said Jonathan Evans, chief executive officer of Lithium Americas. (Reporting by Sourasis Bose in Bengaluru; Editing by Shailesh Kuber)