Eramet Group (Paris, France) has inaugurated its direct lithium extraction (DLE) plant in Argentina, becoming what is said to be the first European company to produce battery-grade lithium carbonate at industrial scale. This announcement marks the start of commissioning of the Centenario DLE plant, located in Salta Province, Argentina. First production expected in November 2024.
This project is a key milestone in Eramet’s strategic development into producing metals for energy transition, as well as a technological achievement at 4,000 m of altitude, implementing at industrial scale one of the most advanced Direct Lithium Extraction (DLE) process, developed in-house, says Eramet. The technology has been tested for 5 years under real-life conditions in a pilot plant built on the Centenario site, where it has achieved a high recovery rate of lithium contained in the brine of approximately 90%. In comparison, says Eramet, the traditional natural evaporation process in Centenario, the recovery rate would be around 40-50%, As a result, the DLE technology developed by Eramet is said to be 50% more efficient than the conventional natural evaporation method. It also enables to reduce the production lead-time to 1 week vs a 12 to 18-month period for the conventional evaporation method. Developed in France by Eramet Ideas, the Group’s R&D and Open Innovation center, this technology is covered by 12 patents.
Eramet’s Centenario DLE plant (Source: Eramet)
Centenario Phase 1 is designed to extract and produce 24,000 metric tons per year (m.t./yr) of battery-grade lithium carbonate at full capacity, and is anticipated to be be positioned in the 1st quartile of the lithium industry cost-curve. The project was developed according to the most stringent standards of sustainable mining, according to Eramet’s Act for Positive Mining roadmap. As s part of this roadmap, Eramet has committed to subjecting all its mining operations to an independent audit process based on the IRMA (Initiative for Responsible Mining Assurance) standard. It is the first international standard for the mining sector with a global approach, including environmental, social and governance aspects of mining operations. By engaging stakeholders from various sectors, including communities, NGOs and industry experts, IRMA ensures a holistic perspective that addresses diverse concerns and promotes transparency throughout the mining supply chain. The Centenario site completed its self-assessment in 2022 and is preparing for an external audit scheduled for the beginning of 2025.
“With the start of our first Centenario plant, Eramet will become a key global player in the sustainable production of lithium, a critical metal for the batteries of electric vehicles. This inauguration confirms our technological and sustainable leadership across the entire lithium value chain, from exploration to extraction and processing. This success is the result of a collective achievement, combining the expertise and commitment of our teams, our partnership with Tsingshan, the support of Argentina’s regional and national authorities and a strong and respectful relationship built with local communities since the start of the project. The lithium produced by Eramet in Centenario, with the objective of meeting the IRMA responsible mining standard, will be valuable for our customers,” said Christel Bories, Group Chair and CEO.
The total amount of investment for Centenario Phase 1 is forecast to be around $870 million. At full capacity, the cash cost for Phase 1 should be positioned in the first quartile of the industry cost curve (estimated at around $4,500 to $5,000/ton-LCE), and the annual EBITDA is estimated at between $210 and $315 million, based on a long-term price assumption of between $15,000 and $20,000/t-LCE.
In November 2023, Eramet’s Board of Directors conditionally approved the investment decision for a second plant at Centenario, representing an additional 30,000t-LCE per year1. This approval remains subject to the obtention of construction permits as well as to the implementation of the new investment fiscal regime for large projects[1] at Federal level, as this regime would enhance Centenario Phase 2 economics and financing conditions.
The Centenario-Ratones deposit is one of the most attractive salars in Argentina, located in Latin America’s ‘lithium triangle’ (Argentina, Bolivia, Chile). Eramet’s extraction rights are covered by a single concession of 560 km², for which the Group owns perpetual mining rights.
The drainable mineral resources amount to more than 15 M.t.-LCE, with an average concentration of 407 mg/L of lithium contained in the brine, supporting further capacity expansion.