French mining company Eramet recently announced the acquisition of its Chinese partner Tsingshan Group's 49.9% stake in the Centenario lithium project in Argentina for $699 million in cash. This move gives Eramet full ownership of the project.
According to Tsingshan Group's Q3 2024 report, the Centenario project is expected to start production and yield output by year-end. Despite the decline in lithium prices, the project remains attractive. Eramet's Chairman and CEO Christel Bories stated in a conference call that full ownership of the project will allow Eramet to independently decide how to proceed with the planned second production facility. The initial processing plant of the project is expected to achieve an annual capacity of 24,000 mt by mid-2025.
Tsingshan Group remains Eramet's partner in Indonesia, where they jointly operate a nickel mine. Additionally, Eramet announced the suspension of its EV battery recycling project in France due to the slow development of the European market and has cut this year's capital investment target.
Eramet expects the second processing plant in Argentina to be delayed, possibly starting construction in 2026. The manganese market, affected by the influx of low-grade ore from South Africa and reduced demand from Chinese steel manufacturers, is expected to normalize in Q4.
