Eramet plans $350 million lithium expansion in Argentina

Oct 1 (Reuters) - Eramet plans to invest about $350 million to expand its production of battery metal lithium in Argentina, the French mining group said on Thursday.

• The expansion, subject to a final investment decision (FID), aims to add 11,000 metric tons of annual capacity of lithium carbonate equivalent, on top of current capacity of 24,000 tons, Eramet said.

• Eramet plans to seek inclusion under Argentina's RIGI investment scheme, it said in a statement issued after Chair and CEO Christel Bories met Argentine President Javier Milei in Paris.

• The company did not give a timeline for the expansion. It had said in July that it was targeting the FID by the end of 2027.

• Eramet's Centenario facility, located in the so-called lithium triangle that also includes parts of Chile and Bolivia, started production in late 2024.

• Eramet developed the facility with Tsingshan before buying out its Chinese partner in 2024.

• Eramet has scaled back earlier plans for a second phase of its lithium operation as it tries to recover from poor financial results and mounting debt.

• The group is planning a €500 million ($565 million) capital increase and sales of stakes in certain assets by the end of the year.

($1 = 0.8853 euros)

(Reporting by Gus Trompiz in Paris and Hugo Lhomedet in GdanskEditing by Milla Nissi-Prussak and David Goodman)