Eramet relaunches the construction of its lithium plant in Argentina

The French mining group Eramet announced that it will relaunch the construction of its lithium plant in Argentina to meet the strong demand for this metal in the context of the energy transition.

The group that owns a large stock of lithium in Argentina had suspended its development projects in April 2020 with the onset of the pandemic of COVID-19.

Construction of the plant will begin in the first quarter of 2022 to enter production in early 2024, Erammet announced in a press release.

The plant will be operated as part of a 50.1% owned joint venture by Eramet, which will assume operational management, while its partner Tsingshan (49.9%) will finance the construction of the plant.

“It makes it possible to go fast and share the risks. It’s a win-win, ”Eramet CEO Christel Bories explained during a conference call with journalists.

He explained that the investment amounted to US $ 400 million, of which US $ 375 million will be provided by Tsingshan.

Eramet and Tsingshan are already partners in Indonesia in a nickel mine and processing plant.

The two groups are aiming for an annual production of 24,000 tons of lithium carbon equivalent (LCE), a level that should be reached in the second half of 2025, according to Christel Bories.

The project is expected to generate an annual Ebitda (results before taxes) of US $ 165 million when the production goal is reached, he added.

The construction of this lithium plant is part of Eramet’s strategy to become a reference player in metals for the energy transition.

Lithium is used in particular for the manufacture of batteries that equip electric cars.

Christel Bories said Eramet was in talks with car and battery manufacturers in Europe to sell lithium.

These discussions include in particular the two major French automakers, he said, referring to Stellantis and Renault.