French company Eramet has completed the acquisition of Tsingshan Group’s 49.9% minority stake in Eramine Sudamérica, the subsidiary operating the Centenario project, a strategic resource in Argentina’s Lithium Triangle. The transaction, which impacts the Group’s net debt by US$699 million, grants Eramet full ownership of this key asset in its lithium expansion strategy.
By Panorama Minero
The Centenario project, initiated with an on-site pilot plant in 2019, holds one of the largest lithium brine deposits in the world, with more than 15 million tons of lithium carbonate equivalent (LCE) and an average lithium concentration of 407 mg/L in brine. These resources support a long-term production capacity currently estimated at over 75,000 tons of LCE per year.
The Centenario lithium extraction plant, officially inaugurated on July 3, 2024, has a nominal capacity of 24,000 tons of battery-grade LCE per year, enough to supply 600,000 electric vehicles. According to the company’s press release, "it utilizes one of the most advanced direct lithium extraction (DLE) technologies available, meeting the industry’s most rigorous standards for responsible mining. The plant, now completing its commissioning phase, is set to begin production in the coming weeks, maintaining its planned operational schedule."
This transaction, described by the company as counter-cyclical, positions Eramet with greater control over the project’s development, while also offering flexibility for future capacity expansion. The Group will assess upcoming investment decisions and expansion options based on market conditions.
Eramet remains optimistic about lithium’s long-term outlook, a critical metal in battery technology for the rapidly growing electric vehicle market. According to the Group’s internal analysis, global lithium demand could double every five years over the next 20 years.
Meanwhile, the collaboration between Eramet and Tsingshan will continue in their joint nickel project in Indonesia, where both companies will further develop their partnership for the production of this other vital mineral for clean energy technologies.
