Eramet Seeks Buyers for Lithium, Nickel Stakes
The French miner is selling minority interests to cut debt after weak metal prices and heavy 2025 losses in free cash flow.
Updated on Nov. 9, 2026 in Corporate Finance
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Eramet is seeking buyers for a minority stake in its Centenario-Ratones lithium project and a substantial part of its 38.7% interest in Weda Bay Nickel, with investors expressing interest. The moves aim to restore a balance sheet strained by a €500-million rights issue and net debt that climbed to €1.94 billion.
Why it matters
Eramet's adjusted debt-to-earnings ratio reached 5.5 at the end of 2025 and it exceeded a debt-to-equity covenant, leaving it reliant on a lender waiver. Asset sales and a capital raise are its main tools to avoid further strain as lithium and nickel prices stay weak.
Eramet's net debt climbed to €1.94 billion from €1.30 billion a year earlier, with adjusted free cash flow negative €481 million in 2025. Benchmark lithium carbonate prices fell 17% and nickel fell 10% over the year, while the company's sale price terms remain undisclosed.
The players
Eramet
A French mining group focused on manganese, nickel and lithium that is restructuring its balance sheet after a costly lithium acquisition.
Tsingshan
A Chinese industrial group that sold its 49.9% interest in the Centenario lithium project to Eramet in October 2024.
The details
Eramet paid $699 million in October 2024 to buy Tsingshan's 49.9% Centenario stake and fully drew its €935-million revolving credit facility in January. The French state's investment agency would keep its 27.1% share and buy some or all of the subscription rights in the rights issue.
Timeline
October 2024: Eramet paid $699 million to buy Tsingshan's Centenario stake.
January 2026: Eramet fully drew its €935-million revolving credit facility.
February 2026: A fire disrupted mineral sands production in Senegal and the rights issue was first proposed.
September 2026: Weda Bay resumed mining after a four-month suspension.
Market Dynamics
Eramet's divestments come as benchmark lithium carbonate fell 17% and nickel fell 10% in 2025, a downturn that has pressured miners across the battery-metals chain. The company is trying to shift from acquisition-led growth to balance-sheet repair as prices stay weak.
Shareholders face possible dilution from the €500-million rights issue, which the French state's investment agency may partly take up. Investors and lenders will watch whether the lithium and nickel stake sales restore Eramet's balance sheet.
The takeaway
Asset sales can ease debt pressure, but they transfer future upside to buyers when commodity prices are at a low point. Watch whether Eramet's leverage falls below three as it targets by year-end.
Further reading
For more on how companies restructure debt through asset sales, see Corporate Finance.
Source note: This article includes information reported by MINING.
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