The French mining and metallurgy company Eramet announced that it will resume construction of its lithium production plant in Argentina through a partnership with Chinese steel group Tsingshan, which seeks to expand the minerals needed for EVs (electric vehicles).
The company has a large lithium deposit in the province of Salta, Argentina, but suspended the installations in April 2020 due to the Covid-19 pandemic.
According to the French group, construction of the plant, with annual production of 24 thousand tons of lithium, will begin during the first quarter of 2022 with commissioning scheduled for the beginning of 2024.
Eramet said it will control the project with a 50,1% stake and retain operational management responsibility, while Tsingshan will finance around US$375 million of an expected investment of US$400 million in exchange for a 49,9% stake.
“Our decision to carry out the lithium project in Argentina is in line with the strong growth dynamics of the market. It is an important milestone in the implementation of our strategic roap, which aims to position Eramet as a reference player in metals for the energy transition”, said Christel Bories, CEO of the group.
According to the executive, Eramet will thus become the first European company to operate a sustainable lithium system with large industrial capacity. “For this initiative with high value creation potential, our partner Tsingshan will provide its expertise and financing resources necessary for the implementation of the plant.”
“Since the first phases of the project in 2019, the teams have remained highly committed, preserving assets and maintaining solid relationships with all stakeholders. We are now ready to develop the plant in the best conditions with initial production scheduled for 2024”, concluded Christel.
