French miner Eramet plans to apply under Argentina's large investment incentive regime for a roughly $350 million expansion of its Salta lithium plant. The project would lift capacity from 24,000 to about 35,000 tonnes a year of lithium carbonate equivalent.
At a glance
- The expansion would add 11,000 tonnes a year of lithium carbonate equivalent to the plant's 24,000-tonne nameplate.
- A pre-feasibility study is done; detailed engineering is under way, with a possible investment decision by the end of 2027.
- RIGI approval would give the project tax, customs and currency benefits plus 30 years of regulatory stability.
Background
Centenario-Ratones is a lithium brine project in Argentina's Salta province. Instead of evaporating brine in large ponds for months, it uses direct lithium extraction, which pulls lithium out of brine chemically. Argentina's RIGI regime, the Large Investment Incentive Regime, offers long-term tax and currency guarantees to projects that commit large sums of capital.
What happened
Eramet said on October 1 that it plans to apply under Argentina's RIGI regime for a first expansion of its Centenario-Ratones lithium operation in Salta. The brownfield project would need an additional investment of about $350 million.
It would add 11,000 tonnes a year of lithium carbonate equivalent to the plant's current nameplate of 24,000 tonnes. Eramet has completed a pre-feasibility study and started detailed engineering, with a possible final investment decision by the end of 2027.
How the first plant is doing
Eramet has invested about $950 million in the first plant, which started production in mid-2025. The company describes it as the first full new-generation direct lithium extraction facility at industrial scale outside China.
The plant reached 90% of nameplate capacity in June 2026 and is expected to approach full capacity by the end of the year. The salar holds more than 15 million tonnes of drainable lithium carbonate equivalent resources, according to the company.
Eramet has been present in Argentina since 2011. Because the expansion would be built at the existing operation, it can share infrastructure that is already running rather than starting from scratch.
What it means
Approval under RIGI would give the expansion tax, customs and foreign exchange incentives along with 30 years of regulatory stability. That kind of guarantee matters for a long-life project in a country with a history of currency controls.
Chair and chief executive Christel Bories backed the plan. She said Argentina has the resources and industrial potential "to become an increasingly important player in the global lithium industry". The new tonnes would not arrive for several years, so the plan does not change near-term lithium supply.
Our read
Outlook: neutral. The expansion is still at study stage and would add supply only after an investment decision in late 2027 at the earliest.
What to watch
- Whether Argentina approves Eramet's RIGI application.
- Whether the first plant reaches full nameplate capacity by the end of 2026.
- A final investment decision on the expansion, possible by the end of 2027.
For information only, not investment advice.
Lithium price in India
metalscost.com India reference price as of 2026-10-14.
Detailed analysis
Timeline
- 2026-10-01: Eramet says it will apply under RIGI for a first expansion of Centenario-Ratones.
Supply Drivers
The expansion would add 11,000 tonnes a year of lithium carbonate equivalent after a possible 2027 investment decision.
Government Policies
Argentina's RIGI regime is drawing new lithium investment with long-term fiscal guarantees.
What could lift prices
- Large producers are still committing capital, which signals confidence in long-term lithium demand.
- Extra supply is years away and depends on a 2027 decision.
What could weigh on prices
- More capacity from Argentina adds to a growing pipeline of brine supply.
- Direct extraction working at scale could make new brine projects cheaper to build.
Country impact
| Country | Impact | Reason |
|---|---|---|
| Argentina | Medium | Another large lithium investment is set to seek RIGI approval in Salta. |
| France | Low | French miner Eramet deepens its main lithium bet outside Europe. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Critical Minerals Mining | Positive | A working direct extraction plant is moving toward its first expansion. |
| Battery Manufacturing | Neutral | Additional lithium chemicals would reach battery makers only later this decade. |
Who gains, who loses
- Salta province: A further $350 million of investment would expand an established operation.
- High-cost lithium producers: Lower-cost brine supply growing in Argentina adds competition over time.
Other ways this could play out
- If RIGI approval and studies go well, Eramet could take an investment decision by the end of 2027.
- If lithium prices stay weak, the decision could slip.
Price risks
- Lithium prices have been volatile and drive the economics of the expansion.
- Argentine policy or currency changes could still affect the project despite RIGI guarantees.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
Argentina