Rio Tinto will invest up to US$900 million in a joint venture with Chile’s state-owned copper arm Codelco for the development of the Salar de Maricunga high-grade lithium brine project.
Salar de Maricunga, in the Atacama desert of South America’s ‘Lithium Triangle’, is recognised for having one of the highest average lithium grades globally with an average 1,073ppm Li for a contained 742,000t of lithium carbonate equivalent (LCE).
The project has the potential for scalable, long-life, and low-cost production and is in synergy with Rio Tinto’s (ASX : RIO) aim to produce over 200,000tpa LCE globally by 2028.
Under the agreement, Rio will acquire a 49.99% stake in Salar de Maricunga SpA, the entity holding Codelco’s licenses and concessions.
The global mining major will pour in an initial $350 million for development and resource analysis ahead of a final investment decision.
Another $500 million will be invested if the project proceeds, covering construction costs, as well as a further $50 million if first lithium production is achieved by the end of 2030.
Both companies will fund any extra capex in proportion to their ownership stakes.
Rio Tinto CEO Jakob Stausholm says that the partnership aligns with the company’s strategy to expand its critical minerals portfolio.
“We are honoured to be chosen as Codelco’s partner to deliver a world class project using direct lithium extraction (DLE) technology in the Salar de Maricunga, leveraging our expertise as a leading producer of lithium for the global market,” Stausholm said.
“Developing this significant lithium resource will deliver further value-adding growth in our portfolio of critical minerals essential for the energy transition.
“Codelco is a strategic partner for Rio Tinto in Chile, with this agreement building on our copper joint ventures.
“We aim to bring significant investment and long-term benefits to the Atacama region as we advance Maricunga and Nuevo Cobre together, with a focus on responsible sustainable development including shared infrastructure and solutions to minimise water usage.”
Codelco chair Máximo Pacheco said the collaboration supports Chile’s lithium diversification strategy and strengthens its existing partnership with Rio, which includes copper JVs such as Nuevo Cobre - also in the Atacama region.
