Eramet inaugurates its direct lithium extraction plant in
Argentina, becoming the first European company to produce
battery-grade lithium carbonate at industrial scale
Paris, July 3rd, 2024, 5:35 p.m CEST
PRESS RELEASE
Eramet inaugurates its direct lithium
extraction plant in Argentina, becoming the
first European company to produce battery-grade lithium
carbonate at industrial scale
- Start of the
commissioning of the Centenario direct lithium extraction plant,
located in Salta Province, Argentina; first production planned in
November 2024
- A key milestone
in Eramet’s strategic development into producing metals for energy
transition
- 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
- Centenario Phase
1 is designed to extract and produce 24,000 t/year1 of
battery-grade lithium carbonate at full capacity, and should be
positioned in the 1st quartile of the lithium industry
cost-curve
- A project
developed according to the most stringent standards of sustainable
mining, according to our Act for Positive Mining roadmap
Christel Bories, Group Chair
and CEO:
"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 much valuable for our customers."
**
A key milestone in Eramet’s development
towards metals for the energy transition
Christel Bories, Chair and CEO of Eramet, has
inaugurated today the Centenario Phase 1 lithium carbonate
production plant in the presence of Gustavo Saenz, Governor of
Salta Region, Diana Mondino, Minister of Foreign Affairs of the
Republic of Argentina, Luis Lucero, Mining Federal Secretary of the
Republic of Argentina and Benjamin Gallezot French Interministerial
Delegate on Strategic Metals and Minerals. This industrial flagship
is operated by Eramine, a joint venture owned by Eramet (50.1%) and
its partner Tsingshan (49.9%).
Today’s ceremony launches the start of the
commissioning of the plant designed to extract lithium from the
salar brine and process it into battery-grade lithium carbonate,
required for the electric vehicles value chain.
The start of production is planned in November
2024. Ramp-up is expected to be achieved by mid-2025. At full
capacity, the Centenario Phase 1 plant will produce 24,000 t/year1
battery-grade lithium carbonate equivalent (‘LCE’), equivalent to
the requirements for 600,000 electric vehicles/year. Production
will be very limited in 2024.
The total amount of investment for Centenario
Phase 1 is forecast to be around $870m1. 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/t-LCE),
and the annual EBITDA is estimated at between $210 and $315
million1, 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 projects2 at Federal level, as this regime
would enhance Centenario Phase 2 economics and financing
conditions.
A large resource, long-life, high-grade,
scalable brine deposit
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 Mt-LCE3, with an average concentration of 407 mg/L of
lithium contained in the brine, supporting further capacity
expansion.
Delivering a project at 4,000 m of
altitude in the remote Andean Highlands
Eramet is starting today the commissioning of a
state-of-the-art processing plant highly automated. This is a key
successful milestone in the project execution considering the very
challenging environment, in particular:
- Altitude and
extreme weather conditions,
- Logistics
challenge to bring on site large pieces of equipment and
material,
- Lack of
pre-existing infrastructure,
- Up to 1,600
people working at site simultaneously and applying the highest
health & safety standards (delivering a TRIR4<2 for roughly
7 million hours of construction activity),
- Importing
equipment from more than 10 countries with an international supply
chain disturbed by the Covid crisis.
One of the most advanced Direct Lithium
Extraction (‘DLE’) process
The Centenario Phase 1 plant uses one of the
most advanced DLE technology:
- Tested for 5
years under real-life conditions in a pilot plant built on the
Centenario site, it has achieved a high recovery rate of lithium
contained in the brine of approximately 90%. In comparison, if we
were using the traditional natural evaporation process in
Centenario, the recovery rate would be 40-50%,
- As a result, the
DLE technology developed by Eramet is 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.
A strong CSR commitmentThe most
stringent standard for responsible miningAs part of its "Act for
Positive Mining" CSR 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.
Dialogue with local communitiesIn early 2010,
from the very beginning of the project, Eramet teams started a
process of study and dialogue with local communities, in particular
the community of Kollas, who is recognized as an indigenous
population through the constitution of the Province of Salta. A
Free, Prior and Informed Consent (‘FPIC’) procedure has been
carried out in accordance with the provisions of ILO Convention
169, leading to the granting of consent for the Centenario project
in February 2020. The communities continue to be kept informed of
the project development.
Local employment During the construction phase,
Eramet has contributed to the creation of more than 2,500 direct
jobs in Salta Region. The Centenario Phase 1 plant will employ
around 350 people, out of which 92 % are Argentinians, 76% from
Salta Province.
“Eramet Beyond” programs for positive
impactEramet is also developing relationships with local NGOs
fostering local economic development as part of its “Eramet Beyond”
program to accelerate local and sustainable development beyond
mining activities. Thus, Eramet partners with “ProMujer” to
enable women entrepreneurs of Salta Province to strengthen their
skills and improve the income from their activities. Also, with the
foundation “Por Nuestros Ninos”, Eramet has developed the “Triple
Impact” project to promote the creation and growth of
micro-businesses with financial, environmental and social impacts
in the Province of Salta.
Pictures: https://we.tl/t-hIyCueRcuy
Calendar
25.07.2024: Publication of 2024 half-year results
24.10.2024: Publication of 2024 Group third-quarter turnover
ABOUT ERAMET
Eramet transforms the Earth’s mineral resources
to provide sustainable and responsible solutions to the growth of
the industry and to the challenges of the energy transition.
Its employees are committed to this through
their civic and contributory approach in all the countries where
the mining and metallurgical group is present.
Manganese, nickel, mineral sands, lithium, and
cobalt: Eramet recovers and develops metals that are essential to
the construction of a more sustainable world.
As a privileged partner of its industrial
clients, the Group contributes to making robust and resistant
infrastructures and constructions, more efficient means of
mobility, safer health tools and more efficient telecommunications
devices.
Fully committed to the era of metals, Eramet’s
ambition is to become a reference for the responsible
transformation of the Earth’s mineral resources for living well
together.
www.eramet.com
INVESTOR CONTACT
Director of Investor Relations
Sandrine Nourry-Dabi
T. +33 1 45 38 37 02
sandrine.nourrydabi@eramet.com
PRESS CONTACT
Media Relations Managers
Fanny Mounier (Corporate)
T. +33 7 65 26 46 83
fanny.mounier@eramet.com
Santiago Cornejo Amat
(Argentina)santiago.cornejo@eramet.com |
|
T. + 54 9 387 2101024
1 On a 100% basis.1 On a 100% basis.2 Regimen de Incentivo Para
Grandes Inversiones, “RIGI”3 15,120 Mt-LCE, Measured + Indicated +
Inferred, as of January 1st, 2024. 4 TRIR (total recordable injury
rate) = number of lost time and recordable injury accidents for 1
million hours worked (employees and subcontractors)
- PR_Centenario inauguration_030724 EN
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