by Mathieu Rosemain
AIX-EN-PROVENCE (Reuters) – Eramet is in talks with several European automakers over trade deals that could help the French mining group finance its lithium production project in Argentina, chief executive Christel Bories said.
The race for lithium, a key component of electric vehicle batteries, is accelerating today as rising tensions between the United States and China prompt European manufacturers to seek to secure their own supply chain.
“We are talking with a lot (car manufacturers) today”, including French people, Christel Bories told Reuters during the Aix Economic Meetings, without further details on the identity of the manufacturers.
“We are indeed discussing the possibility of marketing agreements,” she added, referring to the group’s Argentine project in lithium.
Eramet is studying co-marketing and “offtake” agreements, ie financial commitments to purchase a certain volume of future production.
The mining group is due to start its lithium production in Argentina next year in partnership with the Chinese steelmaker Tsingshan and is interested in studying other potential sites in a zone of South America rich in lithium, which also includes the Chile.
Christel Bories added that she was in discussion with state companies in Chile and hoped to win possible lithium concessions “in the months to come”.
She recalled that two thirds of the world’s lithium reserves are located in South America.
The general manager of Eramet also confirmed that the mining and commodities trading group Glencore was among the companies that expressed an interest in helping to finance the French group’s lithium production in Argentina.
(Gilles Guillaume for the French version)
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