French mining group Eramet is in discussions with several European car manufacturers to secure commercial agreements to fund its lithium production project in Argentina.

 

French mining group Eramet is in discussions with several European car manufacturers to secure commercial agreements to fund its lithium production project in Argentina.  The move is part of a broader effort by Europe's automakers to secure their own supply chains amid escalating tensions between the U.S. and China. Eramet's CEO, Christel Bories, confirmed that the talks involve potential prepayment agreements with carmakers, which would commit to buying a certain volume of the upcoming lithium production. Eramet plans to start lithium production in Argentina next year with Chinese steel group Tsingshan. The company is also exploring other potential sites in a lithium-rich South America zone, including Chile. Bories stated that two-thirds of the world's lithium reserves are in South America. The demand for electric vehicles (EVs) has surged as climate-conscious consumers opt for cars with electric powertrains amid rising fuel prices. Commodities group Glencore has expressed interest in helping finance Eramet's lithium production in Argentina. Buenos Aires-based Pluspetrol SA continues to develop acreage after selling a project last year to China's Ganfeng Lithium Group Co.