Rio Tinto has approved an investment of $2.5bn (£1.98bn) to expand the Rincon project in Argentina, marking the company’s first commercial-scale lithium operation.
This investment aligns with its strategy to develop a robust battery materials portfolio.
The Rincon project consists of both a 3,000t starter plant and a 57,000t expansion facility and is forecast to produce 60,000t of lithium carbonate annually.
The Rincon mine is expected to have a lifespan of 40 years, with construction of the expanded plant due to begin in mid-2025, pending necessary permits.
Initial production is anticipated in 2028, followed by a three-year ramp-up to full capacity, which will create “significant job opportunities and economic benefits for local businesses”.
Situated in the heart of Argentina’s ‘lithium triangle’, the Rincon project features brine extraction through a production well field, along with processing and waste facilities, and supporting infrastructure.
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By GlobalData
The project employs direct lithium extraction (DLE) technology, a process that enhances water conservation, minimises waste and generates lithium carbonate more consistently compared with traditional methods.
According to the company, Rincon is a substantial, long-life asset with Ore Reserves 60% higher than initially estimated at the time of acquisition.
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 [environmental, social and governance] 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.”
Last month, Rio Tinto signed agreements with GravitHy to expedite the decarbonisation of steelmaking in Europe.
