Eramet is executing a strategic pivot toward hydrometallurgical processing, using internalized processing to stabilize margins, reduce reliance on external smelters, and secure long-term value. Two flagship projects—Centenario in Argentina and Weda Bay in Indonesia—exemplify this approach, each designed to transform raw ore and brines into high-value intermediates for lithium and nickel markets.
Centenario Lithium: Direct Extraction and Operational Control
The Centenario lithium brine project, situated in Salta Province, Argentina, operates under a joint venture between Eramet and a Chinese partner, with Eramet retaining operational control. Unlike traditional evaporation pond approaches, Centenario utilizes a direct lithium extraction (DLE) flowsheet, tailored to the salar’s chemistry. This method shortens development timelines, reduces water intensity, and accelerates lithium carbonate production.
Approved CAPEX for Phase 1 is USD 800–900 million, covering brine wells, adsorption units, conversion facilities, and supporting utilities. The ownership balance allows Eramet to maintain process control and standardization, while the minority partner provides market access and financing optionality. Financing blends sponsor equity with long-tenor debt from Asian lenders, with senior debt covering roughly 45% of CAPEX. Drawdowns are explicitly tied to recovery performance during commissioning, emphasizing lender focus on process reliability over nameplate capacity.
Weda Bay Nickel: High-Pressure Acid Leach and Downstream Integration
At Weda Bay in Indonesia, Eramet applies high-pressure acid leach (HPAL) hydrometallurgy to laterite ores, producing battery-grade nickel intermediates. Total capital invested exceeds USD 5 billion, reflecting the scale of mining and integrated processing infrastructure. The project features Indonesian state participation, aligning national industrial policy with Eramet’s long-term operational strategy.
Financing relies on sponsor balance sheets and strategic, offtake-linked debt, reducing exposure to spot nickel prices. While hydrometallurgy increases capital intensity, it allows Eramet to bypass third-party smelters and capture additional downstream value. Once fully ramped up, steady-state EBITDA margins are projected above 40% under mid-cycle nickel pricing, contingent on consistent operating performance rather than output maximization.
Eramet’s twin-hydrometallurgy strategy demonstrates how processing-focused platforms can mitigate market and execution risk, providing long-duration, industrial-style cash flows instead of short-cycle commodity optionality. By internalizing lithium and nickel processing, Eramet reduces reliance on external refiners, stabilizes margins, and positions both Centenario and Weda Bay as integrated, value-capture platforms within the global battery metals supply chain.
