Eramet in talks with European carmakers over Argentina lithium plan

By Mathieu Rosemain

AIX-EN-PROVENCE, France (Reuters) – French mining group Eramet is in talks with a number of European carmakers over business agreements that may assist the corporate finance its lithium manufacturing venture in Argentina, Chief Government Officer Christel Bories stated.

The race for lithium, a key uncooked materials used to make batteries for electrical automobiles, is rushing up as rising tensions between the US and China push Europe’s automakers to safe their very own provide chain.

“We’re speaking with quite a lot of OEMs (Unique Tools Producers, or carmakers) as we speak,” Bories instructed Reuters on Saturday at a enterprise convention within the southeastern metropolis of Aix-en-Provence, including that these included French ones.

“We’re presently discussing potential business agreements,” she stated, on the subject of the group’s lithium venture in Argentina, including these contain joint advertising and marketing and so-called offtake accords, or commitments to purchase a sure quantity of the upcoming manufacturing.

Eramet is because of begin lithium manufacturing subsequent 12 months in Argentina in partnership with Chinese language metal group Tsingshan, and has stated it’s concerned about learning different potential websites in a lithium-rich zone of South America that additionally contains Chile.

“We’re positioning ourselves (in Chile), now we have discussions with state-owned corporations,” Bories stated, with the purpose to achieve potential lithium concessions “within the coming months.”

Two thirds of the world’s lithium reserves are situated in South America, Bories stated.

Demand for electrical automobiles (EVs) has elevated as climate-conscious customers snap up vehicles with electrical powertrains, amid hovering gasoline costs.

Bories confirmed commodities group Glencore (OTC:) was amongst events to have expressed curiosity in serving to finance Eramet’s lithium manufacturing in Argentina.

She declined to elaborate additional or give the names of the European carmakers concerned within the talks.