Castle Peak Industry and Ehrman of France will start the project of extracting lithium from salt lake in Argentina.

Recently, Aoyama Industries announced a cooperation with Ehrman of France to develop lithium mines in Argentina and signed an agreement on a 24000-ton LCM battery-grade lithium extraction project in Centenario-Ratones Salt Lake, Argentina. The project is scheduled to start construction in early 2022 and commercial operation in 2024.

It is reported that Aoyama Industries and France Ehrman cooperated to develop the nickel-iron laterite project in WedaBay, Indonesia as early as 2017, which took less than two years and was completed and put into production in April 2020, deepening the trust and cooperation between the two sides.

Ehrman owns the permanent mining rights of the entire salt lake in Centenario-Ratones, Salta province, Argentina. The salt lake covers an area of about 500km2, about 3800 meters above sea level, with proven reserves of 1.1 million tons of lithium carbonate equivalent, proved resources of about 10 million tons of lithium carbonate equivalent, and an average lithium concentration of about 400 mg / L. based on the salt lake lithium extraction plant with an output of 24000 tons of battery-grade lithium carbonate, the service life of the salt lake lithium extraction plant is more than 40 years.

Minmetals Securities analysis said Ehrman planned to start construction at the end of 2019, but was forced to seal the project in April 2020 due to a global epidemic and financial difficulties. This time, Castle Peak Industries will provide US $375 million in financing to acquire a 49.9% stake in the lithium extraction plant. Ehmann has invested US $185 million in the early stage and only needs an additional US $25 million to retain the controlling stake (50.1%) and the right of operation, which will be underwritten in proportion to equity in the future. the previous successful cooperation between the two sides on Indonesian laterite nickel has also laid a solid foundation for this re-cooperation.