Following the successful operation of a pilot plant on site since end-2019, Eramet engaged construction of Centenario’s first lithium carbonate extraction plant in October 2021 in partnership with Tsingshan. Today, the Group has decided to strategically allocate capital to regain full ownership in the Centenario project. This will enable Eramet to fully control the ongoing development of the world-class Centenario resource.
Eramet holds mining concessions in the Centenario and Arizaro salars in Argentina, some of the largest and most attractive lithium brine deposits in the Lithium Triangle. The total drainable mineral resources of Centenario amount to more than 15 Mt of lithium carbonate equivalent (“LCE”)[1], with an average concentration of 407 mg/L of lithium contained in the brine, supporting a long-term production capacity currently estimated of over 75 Kt-LCE.
Inaugurated on July 3rd, the plant has a nameplate capacity of 24 kt-LCE/year (battery-grade)[2]. It should be positioned in the first quartile of the industry cost curve. The state-of-the-art processing facility, highly automated, will use one of the most advanced Direct Lithium Extraction (“DLE”) technologies and is aligned with the most stringent standard for responsible mining. The plant, currently finishing its commissioning, will start production in the coming weeks. This transaction has no impact on project delivery and operational plan.
This transaction is a counter-cyclical expansion that doubles Eramet’s share of production and is providing the Group with new market flexibility and optionality to develop its portfolio of lithium tier-one assets. Consequently, Eramet will reassess the options, scope and timing of future production expansion projects.
Eramet is confident in the long-term outlook for lithium, a key metal in the battery technology for the growing Electric Vehicles market. Based on latest forecasts, the lithium market demand should almost double every five years in the next 20 years.