Eramet Targets Manganese and Lithium Growth in Turnaround Strategy

French mining group Eramet has unveiled plans to boost manganese output from Gabon and ramp up lithium production in Argentina as part of a turnaround strategy aimed at stabilising its finances after a year of falling profits and rising debt.

The company, which has faced weak metal prices, operational setbacks, and the costly buyout of its Chinese partner Tsingshan in Argentina, said the measures form part of a broader effort to strengthen cashflow and reduce leverage.

Financial Targets

• Eramet aims to lift core EBITDA by €130–170 million ($152–198 million) within two years, supported by rail infrastructure upgrades in Gabon to expand ore transport volumes.

• Lithium production in Argentina is expected to reach full capacity by end-2026, providing an additional profit boost.

• Efficiency measures, including trimmed capital expenditure, are projected to add €60–70 million in free cashflow by year-end 2025.

Debt and Liquidity

The group confirmed it has secured a waiver on its December 2025 debt ratio covenant, ensuring access to an undrawn credit facility of €935 million. Eramet said it continues to evaluate “all strategic and financial options” to accelerate performance and deleveraging.

Market Outlook

Eramet reaffirmed its 2025 volume targets but cautioned that markets remain pressured by slowing Chinese industrial demand and global economic uncertainty. The company expects conditions to begin stabilising in 2026 as supply and demand gradually rebalance.