Rio Tinto plans to expand the Rincon lithium project in Argentina by $2.5 billion, marking the company's first commercial-scale lithium undertaking.
This project is located within the "lithium triangle" and aims to produce 60,000 tonnes of battery-grade lithium carbonate annually.
Construction is expected to begin mid-2025 on the 3,000-tonne starter plant and the 57,000-tonne expansion plant, with first production expected in 2028.
With a mine life of 40 years, this project will create significant jobs and economic opportunities.
Direct lithium extraction (DLE) technology is used on the Rincon project to conserve water, reduce waste, and produce lithium carbonate more consistently than other methods. The use of this technology aligns with Rio Tinto's commitment to meeting the highest standards of environmental, social, and corporate governance (ESG).
As a result, the project is expected to be in the first quartile of the cost curve, and should demonstrate resilience and profitability throughout the life cycle of the project. Rio Tinto is leveraging Argentina's supportive economic policies and skilled workforce to become one of the world's leading lithium producers.
Rio Tinto Chief Executive Jakob Stausholm said: “The attractive long-term outlook for lithium driven by the energy transition underpins our investment in Rincon. We are dedicated to developing this tier 1, world-class resource at scale at the low end of the cost curve. We are equally committed to meeting the highest ESG standards, leveraging our advanced technology to halve the amount of water used in processing, while continuing to grow our mutually beneficial partnerships with local communities and Salta province.
“Building on Argentina's supportive economic policies, skilled workforce, and exceptional resources we are positioning ourselves to become one of the top lithium producers globally. This investment alongside our proposed Arcadium acquisition ensures that lithium will become one of the key pillars of our commodity portfolio for decades to come.”
Rio Tinto's investment in Rincon lithium represents a major shift towards battery materials and the energy transition for the mining industry. Lithium is an essential component of clean technologies such as electric vehicles and battery storage. There will be a significant increase in lithium demand over the next decade.
With Rio Tinto's extension of its lithium production capacity, it is positioned to meet this growing demand and contribute to the global transition to a low-carbon economy.
As of the latest update, Rio Tinto's share price is $121.03, and the company's market cap stands at $150 billion. Despite the positive outlook for Rincon, the share price has been affected by broader market conditions recently.
Nonetheless, Rio Tinto's commitment to sustainable practices and the long-term potential of Rincon will be crucial to its future success.