Paris, October 24 (Reuters) – French mining company Eramet (ERMT.PA) announced it has acquired the remaining 49.9% stake in an Argentine lithium project from its Chinese partner, Tsingshan, for $699 million, thus taking full control of the project. Eramet stated that the purchase was financed through available liquidity, with the Centenario project slated to commence production in the coming weeks.
Eramet Chair and CEO, Christel Bories, highlighted that, despite a drop in lithium prices, full control over the Centenario project would enable Eramet to move forward more flexibly with plans for a second production facility. This announcement lifted Eramet’s shares by 6% in early trading, recovering part of the recent decline caused by production target cuts that drove the shares to a three-year low last week.
The Centenario lithium project initially featured a processing plant built by Tsingshan, with a target of reaching an annual capacity of 24,000 metric tons by mid-2025. Meanwhile, Tsingshan remains Eramet’s partner in an Indonesian nickel project.
In its third-quarter sales update, Eramet also revealed it is suspending plans to develop an electric vehicle battery recycling project in France, citing the slow development of demand in Europe. The company has cut its capital expenditure targets for the year, implementing cost control measures that include suspending operations at its Gabon mine in response to a downturn in the manganese market. Eramet attributed this to low-grade ore from South Africa and reduced demand from Chinese steel manufacturers, but expects the manganese market to return to normal in the fourth quarter.
Eramet CFO Nicolas Carre also mentioned on an analyst call that the second plant in Argentina would see a delay, with final decisions expected next year and potential construction commencing in 2026. Due to high metal price volatility, the company did not update its full-year adjusted EBITDA outlook. However, Carre reiterated expectations for higher second-half EBITDA compared to the first half and anticipates achieving full-year net profit.
