Eramine plans lithium plant expansion in Salta, eyes incentive regime

Eramine, a subsidiary of the French group Eramet, is planning a significant expansion of its lithium carbonate production plant in Salta, Argentina, aiming to boost output and leverage the country's vast lithium resources. The company, which inaugurated its Salta plant in 2024 after 15 years of exploration and an investment of $1 billion, is now operating at 90% of its nominal capacity.

CEO Alejandro Moro announced the company's intention to increase annual production from the current 24,000 tons to 36,000 tons in an initial phase. The long-term vision is even more ambitious, targeting 150,000 tons annually through successive expansions. Moro stated that the resource is available, but the key challenge lies in securing the necessary investments and infrastructure to bring it to fruition.

"We have the resource. The lithium is there. What we need is to make the investments and have the infrastructure to start it up and produce," Moro explained. He emphasized that mining is a long-term business, noting Eramine's 15-year presence in Argentina, with over a decade dedicated to exploration before plant construction. The Salta operation makes Eramine the province's first lithium producer and the fourth company in Argentina to manufacture lithium carbonate on an industrial scale.

Despite Argentina's significant geological potential for lithium, Moro identified a critical bottleneck: infrastructure. He explained that for every ton of lithium carbonate produced, the company must transport four tons of supplies to the high-altitude plant. "In some cases, the logistical cost ends up being higher than the value of the product we are transporting," he said. Eramine currently exports its production primarily to China, South Korea, and Japan, major hubs for battery manufacturing. The company is considering the government's Large Investment Incentive Regime (RIGI) for its expansion project, with plans to submit the proposal by the end of the year.