French mining group Eramet has increased lithium carbonate production at its Centenario operation in Argentina to 4,260 tonnes, more than doubling output as the company advances a €500 million recapitalisation and develops additional lithium projects in Europe and South America.
Lithium revenue reached approximately €70 million, compared with around €7 million in the corresponding period a year earlier, reflecting the increased contribution from the Argentine operation.
Centenario reached its nameplate production capacity at the beginning of October, following maintenance and stabilisation activities at the direct lithium extraction (DLE) facility.
Centenario Moves into Commercial Production
The production increase marks a shift in the project’s development stage, with the focus moving from construction and commissioning towards maintaining consistent output, improving recovery rates and demonstrating the reliability of direct lithium extraction at commercial scale.
Centenario represents a significant Western-owned lithium production asset outside China. Its output is relevant to European battery supply chains, which remain dependent on imported lithium chemicals and Asian processing capacity. The operation’s performance will also provide an indication of the ability of DLE technology to deliver stable commercial production, with implications for similar projects under consideration elsewhere.
€500 Million Recapitalisation Still Incomplete
Alongside the operational progress in Argentina, Eramet is preparing a €500 million capital increase. Reference shareholders, including the French state, have committed to subscribing to the transaction, and the necessary regulatory clearance has been obtained.
The recapitalisation has not yet been completed, meaning the planned €500 million cannot yet be considered available cash for the company’s investment programme.
The funding is relevant to Eramet’s portfolio of capital-intensive development projects, including its activities in France and potential further expansion in Argentina.
EU Support for French Geothermal Lithium Project
Eramet’s French AGeLi geothermal lithium project has been selected to receive approximately €158 million from the EU Innovation Fund.
The allocation represents an important step for the project, but the grant remains subject to the conclusion of the final agreement. It should therefore be distinguished from funding that has already been contracted and disbursed.
The company is also assessing additional expansion opportunities in Argentina, although these plans have not yet reached a final investment decision (FID). Eramet’s current lithium portfolio consequently includes an operating production facility, an unfinished equity recapitalisation, a selected but not yet contracted EU grant, and an expansion programme still under evaluation.
