Eramet takes stake in to acquire full ownership of the Argentiniane lithium brine project 

Eramet has acquired the remaining 49.9% interest in the Centenario lithium brine operation in Argentina from joint venture partner Tsingshan Group.  The purchase of the 49.9% stake is reported by Eramet to have a net cash impact of US$699M, affording Eramet full ownership of the local operating subsidiary company as of the 24th October.  The Centenario operation began commissioninged in mid-2024 with a design capacity to produce 24ktpy lithium carbonate, although resources are reported to support further expansions to 75ktpy LCE in future years.  

Eramet is viewing the acquisition as a counter cyclical expansion of its involvement in the lithium industry, similar to other merger and acquisition activity which has been observed within the industry in recent months.  Despite the fact that lithium pricing has stabilised since its downward trend seen through much of 2023 and the first half of 2024, there remains limited support for prices to recover in the short term with high inventory levels and persistent oversupply conditions. Eramet is instead positioning itself for much longer-term benefit, supported by continued growth in Li-ion battery applications and an expectation of higher lithium prices.  The use of a direct lithium extraction (DLE) process at the Centenario operation is expected to improve lithium recovery from extracted brines, compared to traditional solar evaporation operations, although the novel production process could present additional technical risks in commission and ramp-up.