Eramet Remains Optimistic about Its New Argentine Lithium Operations

Eramet announced developments for its Direct Lithium Extraction (DLE) plant in Argentina during its Q2 2024 earnings call on 26 July, expressing confidence towards the project costs and competitiveness.

Eramet's DLE plant in Centenario, Argentina, is set to commence production in November 2024, with a ramp-up to full capacity expected by mid-2025. At full capacity, the plant will produce 24,000 tonnes of lithium carbonate annually. Eramet is targeting US$4,500 to $5,000 per tonne of lithium carbonate production costs.

When asked about lower lithium prices, CEO Bories emphasized the plant's advantageous position in the first quartile of the cost curve, ensuring resilience against market fluctuations.“I think it rationalized the market going forward, which I think is good, because most of these [lithium] projects were not economical.” Bories also mentioned that the Indian market could potentially alter the dynamic of lithium demand.

Eramet is also exploring further opportunities in Chile and a second lithium plant in Argentina, pending regulatory approvals and improved fiscal conditions.

Author: Hongqiu Su | Battery Metals Analyst Associate | London Office, Shanghai Metals Market
Email: lilysu@smm.cn