Rio Tinto to invest $2.5 billion in Argentina lithium expansion

BUENOS AIRES, December 12, 2024 – Rio Tinto will invest USD 2.5 billion in expanding its Rincon lithium production in Argentina to 60,000 tonnes per year, the company said on Thursday.

Construction on the expanded plant is set to begin in mid-2025, with first production expected in 2028, followed by a three-year ramp up to full capacity.

The Rincon brine extraction mine, located in the heart of Argentina’s “lithium triangle,” has a projected lifespan of 40 years.

The company said the investment reflects its commitment to build a world-class battery materials portfolio.

“The attractive long-term outlook for lithium driven by the energy transition underpins our investment in Rincon,” Rio Tinto CEO Jakob Stausholm said.

“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.”

In October, Rio Tinto unveiled plans to acquire Arcadium Lithium in a deal valued at around USD 6.7 billion.

Lithium is a key metal used in electric vehicle batteries. It experienced a 30% uptick in demand in 2023 and is experiencing the steepest demand growth among energy transition metals, according to the IEA.

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