The Centenario plant represents a milestone in the strategic development of the European company towards the production of metals for the energy transition.
Christel Bories, president and CEO of the French mining company Eramet, today inaugurated the Centenario Phase 1 lithium carbonate production plant in the province of Salta (Argentina).
The event was attended by the governor of this region, Gustavo Sáenz; the chancellor of Argentina, Diana Mondino; the Federal Secretary of Mining, Luis Lucero and Benjamin Gallezot, French interministerial delegate on Strategic Metals and Minerals.
The brand new plant is operated by Eramine, a joint venture owned by Eramet (50.1%) and its Chinese partner Tsingshan (49.9%). On the other hand, the main function of the project is the extraction of lithium from the brine of the salt flat and processing it into battery-quality lithium carbonate. These products in turn are key to the value chain of electric vehicles.
"This success is the result of a collective achievement, which combines the experience and commitment of our teams, our partnership with Tsingshan, the support of the regional and national authorities of Argentina and a strong and respectful relationship built with local communities since start of the project," Bories declared during the plant's inauguration.
Production is expected to begin in November 2024. The production ramp-up phase will be reached in mid-2025. At full capacity, the Centenario Phase 1 plant will produce 24,000 t/year of lithium carbonate equivalent (LCE), which is equivalent to the requirements for 600,000 electric vehicles per year. Although production is expected to be very limited in 2024.
The total investment for Phase 1 of Centenario is estimated at around US$ 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 US$4,500 to US$5,000/t-LCE), and annual EBITDA is estimated between US$210 and US$315 million.
It should be noted that in November 2023, the Eramet Board of Directors conditionally approved the decision to invest in a second plant in Centenario, which will represent an additional 30,000 t-LCE per year. However, this approval depends on obtaining construction permits, as well as the implementation of the new investment tax regime for large projects at the federal level.
