Eramet Acquires Full Control of Centenario Lithium Project in Argentina

Eramet

Eramet, a leading French mining and metallurgy company, has acquired full ownership of the Centenario lithium project in Argentina by purchasing the 49% stake previously held by Chinese steelmaker Tsingshan for $699 million. This strategic acquisition allows Eramet to consolidate its position in the global lithium market and fully leverage the project’s potential.

Key Details of the Centenario Lithium Project

• Production Capacity: The lithium carbonate plant, inaugurated on 3 July 2023, has a nameplate capacity of 24,000 t/yr of lithium carbonate equivalent (LCE).
• Resource Estimate: The Centenario deposit holds an estimated 15 million tons of LCE, which is expected to support annual production of around 75,000 t/yr over the project’s lifetime.
• Strategic Timing: The acquisition occurs during a period of cyclically low lithium prices, with lithium carbonate prices assessed at $9.10-9.40/kg (cif China) on 24 October, their lowest since February 2021.

Eramet’s CEO, Christel Bories, emphasized the significance of this move:

"This strategic move enables us to unlock the full potential of our Centenario world-class deposit and comes at the right time in the context of cyclically low market prices for lithium."

Ongoing Collaboration with Tsingshan

Despite divesting from Centenario, Tsingshan will continue its collaboration with Eramet on their joint nickel project in Indonesia, PT Weda Bay.

Tsingshan’s chairman, Xiang Guangda, highlighted the strong partnership between the two companies:

"Eramet remains a key partner in nickel in Indonesia, and we value the long-term relationship that we have built over the years between our two companies."

Long-Term Lithium Market Strategy

With this acquisition, Eramet strengthens its presence in the lithium market, aiming to capitalize on the increasing demand for lithium-ion batteries, essential for electric vehicles (EVs) and renewable energy storage systems. The Centenario project positions Eramet as a key player in the global energy transition.