France’s Eramet is taking the Centenario-Ratones lithium project in Argentina into sustained commercial production, turning the operation into one of Europe’s most important directly controlled lithium assets in South America.
The project is also becoming a critical industrial test for Eramet’s proprietary direct lithium extraction (DLE) technology. After moving through construction and commissioning, the focus is now shifting from whether the process works to whether it can deliver consistent battery-grade lithium at commercial scale and competitive operating costs.
US$870 Million Project Moves Into Production
The first phase of Centenario-Ratones required approximately US$870 million in investment. Unlike conventional lithium brine projects that depend on large evaporation ponds, Eramet’s DLE process is designed to extract lithium directly from underground brine over a much shorter processing cycle. The lithium is recovered from the brine before the depleted solution is returned to the salar system.
The technology is central to the project’s economic model because it potentially reduces the time required to recover lithium while avoiding the extensive evaporation infrastructure associated with conventional brine production. The industrial operation is now providing the first meaningful test of whether those advantages can be sustained outside the laboratory and pilot environment.
Production Reaches 80% of Capacity
Centenario-Ratones produced approximately 3,720 tonnes of lithium carbonate during the first quarter of 2026. The facility reached nearly 80% of its nameplate capacity in March, representing a significant step in the transition from commissioning to commercial operations. Eramet is targeting full-year production of approximately 17,000 to 20,000 tonnes of lithium carbonate in 2026.
The facility has a designed production capacity of approximately 24,000 tonnes per year, which Eramet expects to approach by the end of 2026. Achieving a short period of high output is not the project’s only objective. The more important challenge will be maintaining high utilisation over extended periods while producing material that consistently meets battery-industry specifications.
Battery Customers Demand Consistent Lithium Quality
For lithium producers, nameplate production is only one measure of commercial performance. Battery manufacturers require reliable supplies with tightly controlled purity, particle characteristics and impurity levels. A plant capable of reaching high throughput but unable to maintain consistent chemical quality could struggle to secure or retain premium customers.
Centenario-Ratones must therefore demonstrate repeatable production rather than simply achieve a temporary peak in output. That makes the 2026 ramp-up an important test of both the plant’s engineering and Eramet’s DLE technology.
Eramet Controls the Full Production Chain
One of the project’s major strategic advantages is the level of control Eramet retains over the operation. The French group controls the mineral resource, owns the extraction technology and is responsible for producing the final lithium carbonate. That integrated structure reduces dependence on external technology providers and gives Eramet greater control over the development and optimisation of the production process.
It could also provide European customers with an alternative supply route for lithium controlled by a European industrial company rather than relying exclusively on external producers and technology suppliers. For Europe, that makes Centenario-Ratones more significant than its production volume alone might suggest.
Direct Lithium Extraction Still Faces Operating Challenges
DLE offers potential advantages over conventional evaporation, but it also introduces a technically demanding operating environment. The performance of the process can depend on the chemistry of the brine, the behaviour and durability of the extraction media, water management, reagent consumption and the ability of processing equipment to operate consistently through repeated cycles.
Those variables can directly influence operating costs. A plant may reach its nominal production rate and still fail to deliver attractive economics if it requires excessive reagents, experiences frequent equipment interruptions or produces lithium carbonate with inconsistent quality. The coming months will therefore provide important information about the real-world operating characteristics of Eramet’s technology.
Expansion Will Depend on First-Phase Economics
The US$870 million first-phase investment also establishes a significant capital benchmark for any future expansion. A second phase would need to demonstrate that the initial operation can generate sufficient operating cash flow to support additional investment without placing excessive pressure on Eramet’s balance sheet.
The performance of the first commercial facility will consequently influence more than 2026 production figures. It will help determine the company’s willingness and ability to commit additional capital to expanding lithium production in Argentina. If operating costs, recoveries and product quality meet expectations, the first phase could provide a foundation for further growth.
2026 Becomes the Defining Test for Eramet’s DLE Strategy
Centenario-Ratones has now moved beyond the conceptual stage occupied by many proposed direct-lithium-extraction projects. The facility is producing lithium carbonate at industrial scale, giving Eramet an opportunity to demonstrate whether its technology can perform consistently under commercial operating conditions.
The central question is no longer simply whether DLE can recover lithium from Argentine brine. It is whether the process can deliver stable battery-grade production, strong recovery rates and competitive costs at sustained industrial throughput. The outcome of the 2026 production ramp-up will therefore have implications well beyond Centenario-Ratones. If Eramet can demonstrate reliable performance near its 24,000-tonne annual design capacity, the project could strengthen the case for further DLE development in Argentina and reinforce Europe’s position in the global lithium supply chain.
