Deutsche E Metalle (DEM), a Dresden-based engineering and mining company, has announced the completion of its first successful drilling campaign at the Carachi Blanco lithium project in Argentina, revealing lithium concentrations of up to 377 milligrams per liter (mg/L). The company said the discovery marks a major milestone toward its goal of establishing ESG-certified lithium production in South America’s lithium triangle.
Located in Argentina’s Catamarca province, the Carachi Blanco project spans 27 concessions over an area of 70,000 hectares. DEM describes it as the only German-backed initiative in the region to have uncovered lithium concentrations suitable for sustainable extraction. The company projects that from 2030, the site could produce enough lithium to supply batteries for up to one million electric vehicles annually.
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“After three years of intensive project development in Argentina, we are now pleased to announce a very promising lithium discovery following the completion of the drilling campaign,” DEM CEO Micha Zauner told Electrive. “The high lithium grades and flow rates of the brine confirm the impressive potential of our deposit and mark an important milestone on our path to sustainable lithium production.”
The drilling campaign followed extensive geophysical studies, including Transient Electromagnetics (TEM) and CSAMT surveys, which identified several zones with high electrical conductivity — a key indicator of lithium-rich brine deposits. DEM said it also discovered a high-quality freshwater aquifer that could secure the project’s long-term water and energy supply, a significant advantage given the region’s arid climate.
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DEM’s U.S.-based subsidiary, Lithium Mining Corporation (LMC), is managing international operations, with local drilling and environmental work handled by its Argentine unit, Cuatro Patas SRL. The company plans to begin commercial lithium production in 2030, targeting an output of around 30,000 tons per year of lithium carbonate equivalent (LCE) using direct lithium extraction (DLE), a method considered more environmentally friendly than traditional evaporation techniques.
Before production begins, DEM must complete a feasibility study, secure a mining permit, and make a final investment decision (FID) for the construction of the facility, which will be powered by renewable energy sources including solar, geothermal, and wind power.