Eramet plans $350 million lithium expansion in Argentina

Eramet Announces $350 Million Lithium Expansion Project in Argentina

Key Details of Eramet's Lithium Expansion

Investment and Expansion Plans

Oct 1 (Reuters) - Eramet plans to invest about $350 million to expand its production of battery metal lithium in Argentina, the French mining group said on Thursday.

Capacity Increase

• The expansion, subject to a final investment decision (FID), aims to add 11,000 metric tons of annual capacity of lithium carbonate equivalent, on top of current capacity of 24,000 tons, Eramet said.

Regulatory and Investment Scheme

• Eramet plans to seek inclusion under Argentina's RIGI investment scheme, it said in a statement issued after Chair and CEO Christel Bories met Argentine President Javier Milei in Paris.

Timeline and Decision

• The company did not give a timeline for the expansion. It had said in July that it was targeting the FID by the end of 2027.

Facility and Partnership Background

Centenario Facility Overview

• Eramet's Centenario facility, located in the so-called lithium triangle that also includes parts of Chile and Bolivia, started production in late 2024.

Partnership with Tsingshan

• Eramet developed the facility with Tsingshan before buying out its Chinese partner in 2024.

Financial Strategy and Future Outlook

Scaling Back and Financial Recovery

• Eramet has scaled back earlier plans for a second phase of its lithium operation as it tries to recover from poor financial results and mounting debt.

Capital Increase and Asset Sales

• The group is planning a €500 million ($565 million) capital increase and sales of stakes in certain assets by the end of the year.

Exchange Rate Information

($1 = 0.8853 euros)

Reporting Credits

(Reporting by Gus Trompiz in Paris and Hugo Lhomedet in GdanskEditing by Milla Nissi-Prussak and David Goodman)