Eramet's $800M Lithium Investment A Vote Of Confidence For Argentinian Economic Turnaround
Portfolio Pulse from Stjepan Kalinic
Argentina's lithium reserves are attracting significant foreign investment, seen as a key to economic recovery. Eramet's subsidiary Eramine announced an $800 million investment in Salta for lithium production, expected to export 4,000 tons in 2024, scaling to 24,000 tons annually. Additionally, United Mining Projects Corporation's subsidiary Marhen Lithium plans a $550 million investment in Catamarca, estimated to create 900 jobs and contribute $168 million locally. These projects come as Argentina faces economic challenges, with the IMF forecasting a 2.8% GDP contraction in 2024 but a potential turnaround with reduced inflation by 2025.
April 22, 2024 | 1:56 pm
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Eramet's subsidiary Eramine is investing $800 million in Argentina's lithium production, aiming to export up to 24,000 tons annually at full capacity, signaling a strong move into the lithium market.
Eramet's significant investment through Eramine in Argentina's lithium sector indicates a bullish outlook on lithium demand, driven by the EV and renewable energy markets. This strategic investment is likely to enhance Eramet's position in the lithium market, potentially boosting its stock price in the short term as investors react to the company's aggressive expansion and the anticipated increase in lithium demand.
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