Finance
Eramet eyes manganese, lithium growth in turnaround plan
Published by Global Banking and Finance Review
Posted on December 4, 2025
2 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 4, 2025
2 min readLast updated: January 20, 2026
Eramet plans to enhance manganese and lithium production to improve finances, targeting significant EBITDA growth and leveraging infrastructure upgrades.
PARIS, Dec 4 (Reuters) - Eramet aims to deliver more manganese from Gabon and lithium from Argentina as part of efforts to strengthen its finances, which have been hit by falling profits and rising debt, the French mining group said on Thursday.
The company, pressured by weak metal prices, production setbacks and the buyout of its lithium partner in Argentina, had pledged additional measures in early December after trimming capital expenditure.
Eramet aims to generate a boost to core EBITDA (earnings before interest, tax, depreciation and amortisation) of between 130 million euros and 170 million euros ($151.52 million to $198.14 million) within two years, supported by rail infrastructure improvements in Gabon to expand volumes of transported ore, it said in a statement.
On top of the EBITDA target, the firm may also get a profit boost from the ramp-up of its lithium production in Argentina, with capacity expected to be reached by the end of 2026, it said.
Eramet has obtained a waiver on a December 2025 debt ratio covenant from its lending group, ensuring availability of its currently undrawn credit facility of 935 million euros, it said.
Efficiency steps including on capex should boost free cashflow by 60 million to 70 million euros by year-end, Eramet said, adding it was evaluating all strategic and financial options to accelerate its performance and deleveraging efforts.
Eramet, which confirmed 2025 volume targets, said it expected its markets to remain pressured by slowing Chinese industrial demand and global economic uncertainty, though conditions should show signs of stabilising in 2026 as supply and demand gradually rebalance.
($1 = 0.8580 euros)
(Reporting by Gus Trompiz and Louise Heavens)
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure used to evaluate a company's operating performance and profitability.
Lithium is a soft, silvery-white metal that is highly reactive and is used primarily in rechargeable batteries for mobile phones, laptops, and electric vehicles.
Capital expenditure (capex) refers to funds used by a company to acquire, upgrade, and maintain physical assets such as property, buildings, or equipment.
A debt ratio covenant is a financial metric used in loan agreements that stipulates the maximum allowable debt level a company can have relative to its assets.
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