Eramet has acquired its Chinese partner Tsingshan’s 49.9% stake in a lithium project in Argentina for $699 million, the French mining company announced. The Centenario project is set to begin production in the coming weeks, and full ownership will enable Eramet to determine the direction of a planned second production facility, according to Chair and CEO Christel Bories.
Despite a recent decline in lithium prices, the project remains appealing. Eramet’s shares rose by 6% in early trading, partially recovering from losses incurred after the company lowered its production targets, which had driven shares to three-year lows.
Tsingshan was instrumental in building the initial processing plant at the Centenario mine, which aims for an annual capacity of 24,000 metric tons by mid-2025. The partnership will continue in Indonesia, where both companies operate a nickel mine.
In a separate announcement, Eramet also revealed the suspension of plans to develop an electric vehicle battery recycling project in France, citing slow market development in Europe. Additionally, the company has reduced its capital investment targets for the year, implementing cost control measures, including halting manganese production in Gabon due to market downturns.
The delay in the second plant’s construction in Argentina, now expected to start in 2026, has also contributed to the reduced spending. Bories indicated that the manganese market is anticipated to stabilize by the fourth quarter, following recent challenges due to low-grade ore influx from South Africa and reduced demand from Chinese steelmakers.
Eramet did not revise its full-year adjusted EBITDA projections, noting the volatility in metal price forecasts but maintained expectations for higher EBITDA in the second half of the year, with a forecast of achieving a net profit for the full year.
