Eramet (EPA:ERA) is considering investing around US$350 million ($504.1 million) to expand its Centenario-Ratones lithium operation in Argentina, potentially increasing production capacity by almost 50%.
The French miner first announced plans for the brownfield expansion in July following the completion of a Pre-Feasibility Study.
The proposed expansion would add 11,000 tonnes of lithium carbonate equivalent (LCE) production capacity annually to Centenario-Ratones’ existing nameplate capacity of 24,000 tonnes per annum (tpa).
The US$350 million investment remains subject to a final investment decision (FID), which Eramet says could be made by the end of 2027. Part of the investment would be funded by cash generated from the existing operation.
Detailed engineering studies are now underway, Eramet says.
Production ramping up
According to Eramet, Centenario-Ratones reached 90% of nameplate capacity in June, approximately one year after the plant began ramping up production and in line with the company’s development plan.
The company expects the operation to reach close to 100% of its 24,000tpa nameplate capacity by the end of this year.
Eramet says the brownfield expansion has been designed to leverage existing infrastructure and deliver lower capital intensity, while strengthening Centenario-Ratones’ position in the first quartile of the global lithium industry cost curve.
The company also plans to apply for inclusion under Argentina’s Large Investment Incentive Regime (RIGI), which provides tax, customs, and foreign exchange incentives as well as 30 years of regulatory stability.
The announcement follows a meeting between Eramet Chair and CEO Christel Bories and Argentine President Javier Milei during Argentina Week in Paris.
According to Eramet, seeking inclusion under RIGI reaffirms its long-term commitment to Argentina and its ambition to further develop its lithium operations in the country.
Expansion potential
Centenario-Ratones, located about 4,000m above sea level in Salta province, began producing lithium carbonate in late 2024.
Eramet initially developed the project with China’s Tsingshan Holding Group before buying out its former partner that year.
Eramet first discovered the Centenario-Ratones salar in 2012. The site now holds more than 15 million tonnes of drainable LCE mineral resources, providing scope for further expansion beyond the proposed first phase.
Around US$950 million has been invested in the first 24,000tpa plant, making Centenario-Ratones one of the largest French industrial investments in Argentina, Eramet says.
Write to Jackson Chen at Mining.com.au
Main Image: Eramet
