Eramet inaugurates lithium extraction plant in Argentina
The new facility will be operated by a joint venture of which Eramet owns the majority with 50.1%, while the rest belongs to partner Tsingshan. Tsingshan is a Chinese raw materials company known for its activities in the steel and nickel markets.
While the official start of production is scheduled for November 2024, the full production ramp-up is not expected to be completed until mid-2025. Then, the plant will produce about 24,000 tonnes of battery-grade lithium carbonate equivalent per year.
In terms of investment, the partners report having spent around 870 million dollars for the first phase. They expect an EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) between $210 and $315 million, based on a long-term price assumption of between $15,000 and $20,000/t-LCE.
“With the start of our first Centenario plant, Eramet will become a key global player in the sustainable production of lithium, a critical metal for the batteries of electric vehicles,” explained Christel Bories, Group Chair and CEO, adding: “This inauguration confirms our technological and sustainable leadership across the entire lithium value chain, from exploration to extraction and processing.”
Eramet seems to be focusing on the Centenario-Ratones deposit in Argentina for the moment, and has plans underway to build another refinery there, which the company’s board had approved of directors in late 2023. A plan fell through to open a factory together with BASF in Indonesia in June, however the battery recycling plant with Suez that is being built in Dunkirk is still planned, securing access to the other side of the lithium extraction process.
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