Rio Tinto to invest $2.5 billion in Argentina
Rio Tinto has approved $2.5 billion to expand the Rincon project in Argentina. It will be the first company’s lithium operation on commercial scale. First production is expected in 2028 followed by a three-year ramp up to full capacity.
Global concern find in the Rincon project demonstrating its commitment to building a world-class battery materials portfolio.
Rincon's capacity of 60,000 tonnes of battery grade lithium carbonate per year is comprised of the 3,000-tonne starter plant and 57,000-tonne expansion plant, write Rio Tinto in press release. Rincon’s mine life is expected to be 40 years, with construction of the expanded plant scheduled to begin in mid-2025, subject to permitting.
“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” — said Jakob Stausholm, Rio Tinto Chief Executive.
Located in the heart of the ‘lithium triangle’ in Argentina - as Rio Tinto pointed - the Rincon project consists of brine extraction using a production wellfield, processing and waste facilities, as well as associated infrastructure. The project uses direct lithium extraction (DLE) technology, a process that supports water conservation, reduces waste and produces lithium carbonate more consistently than other methods.
According to the press release, this investment supports Argentina’s ongoing ambitions to become a world-leading lithium producer. Argentina's economic reforms and the new Incentive Regime for Large Investments (‘RIGI’) provide a favourable environment for investment, offering benefits such as lower tax rates and accelerated depreciation.
“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” — Jakob Stausholm added.
