Eramet in talks with European automakers on lithium plan in Argentina

French mining group Eramet is in talks with several manufacturers of automobiles Europeans on commercial agreements that would help the company to finance its production project of lithium in Argentinasaid its chief executive Christel Bories.

The race for lithium, a key raw material for making electric vehicle batteries, is accelerating as rising tensions between the United States and China push European carmakers to secure their own supply chains.

“We are talking to a lot of original equipment manufacturers (car producers),” Bories told Reuters at a business conference in the city of Aix-en-Provence on Saturday, adding that French companies were among them.

“We are currently discussing potential trade agreements”he said, referring to the group’s lithium project in Argentina, adding that these involve joint marketing and so-called purchase agreements, or commitments to buy a certain volume of forthcoming production.

Eramet plans to start lithium production in 2024 in Argentina in partnership with Chinese steel group Tsingshan, and has said it is interested in exploring other potential sites in a lithium-rich area of ​​South America that also includes Chile.

“We are positioning ourselves (in Chile), we have conversations with state companies”said Bories, with the aim of obtaining potential lithium concessions “in the coming months”

Two-thirds of the world’s lithium reserves are in South America, Bories said.

Demand for electric vehicles has surged as climate-conscious consumers snap up electric-powered cars amid soaring fuel prices.

Bories confirmed that commodity group Glencore is among the parties that have expressed interest in financing Eramet’s lithium production in Argentina.

The Eramet representative declined to provide further details or the names of the European automakers participating in the talks.

Source: Reuters