French mining group Eramet has announced plans to start production at its new Centenario lithium plant in Argentina in November, with the goal of reaching a capacity of 24,000 metric tons of battery-grade lithium by mid-2025.
The $870 million Centenario project, a joint venture between Eramet (50.1%) and Chinese nickel and steel giant Tsingshan, is set to be one of the first commercial-scale operations globally to utilize direct lithium extraction (DLE) technology. This innovative processing system is expected to help speed up lithium production, as governments and automakers race to secure supplies of the critical metal needed for electric vehicle batteries.
Argentina, which sits in South America’s “lithium triangle,” is the world’s fourth-largest lithium producer and is looking to ramp up output with several new projects scheduled to come online later this year. Eramet’s Centenario plant is poised to be the first of these new operations to begin production.
The company is now in the final testing and commissioning phase at the plant, and is also seeking permits for a second 30,000-ton lithium facility, with construction likely to start next year. Eramet plans to eventually build a third plant of the same size.
The recent passage of an economic reform bill in Argentina’s Senate, which includes incentives and easier access to currency exchange markets for large investments, could help boost Eramet’s expansion plans, according to CEO Christel Bories.
While neighboring Chile has struggled to attract as many new lithium projects as Argentina, Eramet says it will continue to pursue opportunities in the country as well. The company acquired a mining concession in a Chilean lithium salt flat last year and is evaluating a potential partnership with state-owned miner Codelco on a project in the Maricunga salt flat.
Eramet’s push to establish a significant lithium production footprint in Argentina and Chile underscores the growing importance of securing access to this critical raw material as the global transition to electric vehicles accelerates.