Eramet Begins Lithium Production in Argentina, Expands Global Supply

Eramet

French mining company Eramet has officially commenced lithium carbonate production at its Centenario plant in Argentina, marking a significant milestone in the global lithium supply chain. The project successfully integrates direct lithium extraction (DLE) technology, positioning Eramet as a key player in the lithium industry at a time when demand for battery-grade lithium carbonate continues to surge.

Centenario Lithium Plant: Industrial-Scale DLE Implementation

The Centenario-Ratones salar, located in Argentina, holds an estimated 15 million metric tons (mt) of lithium carbonate equivalent (LCE) in total recoverable mineral resources. With an initial production capacity of 24,000 mt per year, the plant has the potential to scale up to 75,000 mt LCE annually. The integration of direct lithium extraction (DLE) technology at an industrial scale enhances recovery efficiency and places the project within the first quartile of the lithium industry cost curve. This positions Eramet favorably against competitors in terms of production costs and long-term sustainability.

DLE technology, which allows for a more efficient and environmentally friendly lithium extraction process, is gaining traction as the industry seeks alternatives to traditional evaporation pond methods. By implementing DLE, Eramet can accelerate lithium production, reduce water consumption, and improve overall recovery rates.

Eramet Takes Full Control After Buyout of Tsingshan Stake

Eramet strengthened its hold over the Centenario project in October 2024 by acquiring the remaining 49.9% stake from Chinese steelmaker Tsingshan Holding Group for $699 million. This strategic buyout gives Eramet full ownership and operational control over the lithium operation, enabling the company to streamline decision-making and focus on long-term expansion plans.

The buyout signals Eramet’s strong commitment to lithium production, reinforcing its strategic position in the global battery supply chain. As demand for electric vehicle (EV) batteries continues to rise, Eramet's Argentina operation is expected to play a pivotal role in securing lithium supplies for global markets.

Conclusion

Eramet’s launch of lithium carbonate production at Centenario represents a major advancement in the lithium industry, particularly with its industrial-scale adoption of DLE technology. The plant’s scalability to 75,000 mt LCE annually, combined with its low-cost positioning, makes it a significant asset in the global lithium market. By regaining full ownership of the project, Eramet has reinforced its role as a leading supplier of battery-grade lithium, crucial for the future of EVs and energy storage systems.