Rio Tinto to invest US$2.5 bn to boost Argentina lithium output

After acquiring the Arcadium Lithium operations, mining company Rio Tinto has now announced a US$2.5 billion investment to expand lithium carbonate production at its Rincón de Salta project. This will be the Anglo-Australian company’s first commercial-scale operation, and obtained its Environmental Impact Declaration a year ago.

The investment decision, which will be presented for Argentina’s RIGI large investment regime, demonstrates “the company’s commitment to establishing a first-class battery materials portfolio,” Rio Tinto told the Herald ’s sister title, Energy Report , in a statement. The Rincón project involves the extraction of brine through a series of production wells and processing and effluent facilities, along with its associated infrastructure. The total production capacity is 60,000 tonnes of high-quality lithium carbonate for batteries per year.

That figure includes an initial 3,000-tonne plant and a 57,000-tonne expansion plant. The project uses direct lithium extraction (DLE) technology, a process that helps conserve water, reduces effluents, and produces lithium carbonates more consistently than other methods. You may also be interested in: RIGI: understanding Argentina’s new large investment regime The company reports that Rincón’s expected lifecycle is 40 years, with the construction of the expanded plant slated to begin in mid-2025, subject to permit approval.

“First production is expected to begin in 2028, followed by three years of increased activity until the maximum capacity is reached, which will generate a significant number of jobs and economic opportunities for local businesses,” the company stated in a press release. Rio Tinto Group’s chief executive officer, Jakob Stausholm, welcomed the investment decision. “The attractive long-term outlook for lithium driven by the energy transition supports our investment in Rincón.

We are dedicated to developing this world-class resource at a large scale and at the low end of the cost curve. We are also committed to meeting the highest ESG standards, using our advanced technology to halve the amount of water used in the refining process while continuing to strengthen our mutually beneficial partnerships with local communities and the province of Salta,” he said. Rio Tinto’s plans to enter the RIGI Company sources confirmed that the intention is to incorporate this investment into the RIGI.

“Argentina’s economic reforms and the RIGI provide a favorable investment climate, with benefits such as lower tax rates, accelerated depreciation, and regulatory stability for 30 years, which protects the project from future policy changes and further safeguards investors.” You may also be interested in: Argentina launches RIGI with changes in the fine print Stausholm added: “Thanks to exceptional resources, a skilled workforce, and favorable economic policies in Argentina, we are in an excellent position to become one of the world’s leading lithium producers. This investment, along with our Arcadium acquisition proposal, ensures that lithium will be one of the key pillars of our raw materials portfolio for the next decades,” Stausholm added.

Rio Tinto buys Arcadium Lithium The mining company announced in October that it had acquired Arcadium Lithium for US$6.7 billion in cash. Globally, Arcadium has 1,300 employees, manages resources in Argentina and Australia, and operates conversion plants in the U.

S., China, Japan, and the United Kingdom. It also has production projects in Canada.

The sale, which is expected to conclude in the first quarter of 2025, includes all of Arcadium’s operations in Argentina: the Fénix and Sal de Vida projects in Catamarca, and Olaraoz I and II and Cauchari projects in Jujuy. The Fénix project, owned by Livent before being acquired by Arcadium, currently has a production of 20,000 metric tonnes of lithium carbonate in situ and another 9,000 metric tonnes of lithium chloride in the town of Güemes, an external plant located on the Salta plains. With that acquisition and the decision to expand its own Salar de Rincón plant, there is no doubt that Rio Tinto has a clear goal with lithium for the next decade.

“The investment will support Argentina’s current ambition to become one of the world’s leading lithium producers,” the company said. Rio Tinto invests in copper in San Juan Rio Tinto, through its tech subsidiary Nuton, recently confirmed a new US$35 million investment for McEwen Copper’s Los Azules copper project, in the San Juan town of Calingasta. With the funds from the acquisition, the world’s second-largest mining company will boost work on the feasibility study for the San Juan copper project, which is expected to be published in the first half of 2025.

Michael “Mike” Meding, Vice President of McEwen Copper and General Manager of the Los Azules project, told Energy Report that with this purchase, Nuton has now invested US$100 million, confirming the growing value of the initiative. “This fourth investment by Rio Tinto is an expression of confidence in the project, its leadership, and development, in a project that, measured in resources (according to Mining Intelligence), is the eighth largest in the world in terms of resources,” Meding said. You may also be interested in: UK Ambassador Kirsty Hayes: British companies are taking a ‘wait-and-see’ approach.