Eramine Sudamerica opens first lithium carbonate plant in Argentina

Announced on Monday, the company, which is co-owned by French miner Eramet and Chinese steelmaker Tsingshan, indicated it was on track to become the country's fourth producer of the battery metal.

The company anticipates producing 3,000 tons this year and ramping that up to approximately 24,000 tons by 2025, according to the company's sustainability director, Constanza Cintioni.

The price of lithium has risen substantially in recent years before declining heavily. This is primarily due to the slowing of EV sales in China.

South America holds over half of the world's known lithium resources. Located in the "lithium triangle" that includes Bolivia and Chile, Argentina is the world's fourth-largest lithium producer and has attracted investment from foreign firms from countries as diverse as Canada and China.

Amidst efforts to combat the country's severe economic crisis and sky-high inflation, Argentina's libertarian President Javier Milei is working to boost depleted foreign reserves through dollars generated from exports of mining, energy, and grains. The Eramine Sudamerica plant sits on the Centenario Ratones salt flat. This is located 1,400 kilometers northwest of Buenos Aires and 4,000 meters above sea level.

Cintioni said that the plant will export all of its output and has an expected operational lifespan of 40 years. She estimated the total investment at around USD$800 million. She also mentioned plans to establish a similar plant in the same basin.

Read more: Lithium South installs first production well at largest claim block, prepares for testing

Read more: Lithium South preliminary economic assessment shows optimism for lithium's future

The plant represents Salta's first lithium carbonate facility

The plant represents Salta's first lithium carbonate facility and adds to three others in Argentina, where industry sources reported a 20 per cent increase in lithium exports last year.

In Jujuy province, two additional projects are underway: Sales de Jujuy and Arcadium Lithium plc (NYSE: ALTM) subsidiary Allkem Limited operate on the Olaroz salt flat, and Exar, owned by China's Ganfeng Lithium (SHE: 002460) and Canada's Lithium Americas (TSX: LAC) (NYSE: LAC), is based in Olaroz Cauchari.

Meanwhile, Arcadium Lithium plc's (NYSE: ALTM) runs a plant on the Hombre Muerto salt flat in Catamarca province.  This is close to Lithium South Development Corporation (TSXV: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ).  Lithium South recently filed a preliminary economic assessment (PEA) for its Hombre Muerto North Lithium.

Lithium South Development Corporation is a sponsor of Mugglehead news coverage

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