Rio Tinto expects its lithium division to become the fastest-growing part of its business over the next several years as the mining company accelerates investments to meet rising demand from the electric vehicle and energy storage industries.
Speaking during the Fastmarkets Global Lithium conference in Las Vegas, Jérôme Pécresse, head of Rio Tinto’s aluminium and lithium business, said the company plans to increase annual lithium production from at least 61,000 tonnes this year to around 200,000 tonnes of capacity by 2028, depending on market conditions.
Lithium Becomes Strategic Growth Business
Rio Tinto entered the global lithium market through its acquisition of U.S.-based Arcadium Lithium last year, adding operating mines, processing plants and development projects across four continents.
The acquisition also expanded Rio Tinto’s customer base, including supply relationships with electric vehicle manufacturers such as Tesla, strengthening the company’s presence in the battery materials sector.
The transaction was completed during a period of weak lithium prices, although market conditions have recently shown signs of improvement following an extended period of oversupply.
New Projects Advance in Argentina and Canada
Rio Tinto is currently developing new lithium projects in Argentina and Canada that are designed to remain competitive even during periods of lower lithium prices.
Pécresse said delivering those projects remains the company’s primary priority.
“Roughly 90% of my time is devoted to delivering projects on time and within budget.”
The company is also prioritizing long-term supply agreements with customers, using contracts that incorporate price floors and ceilings to reduce market volatility for both producers and buyers.
No Additional Acquisitions Planned
Despite its expansion ambitions, Rio Tinto said it is not actively pursuing further lithium acquisitions.
According to Pécresse, the assets obtained through the Arcadium acquisition provide sufficient production potential to meet the company’s 2028 growth targets.
Direct Lithium Extraction to Play Larger Role
Rio Tinto also plans to expand the use of direct lithium extraction (DLE) technology, one of the strategic capabilities acquired through the Arcadium transaction.
The company expects at least one DLE project to begin operating within the next few years as it seeks to improve lithium recovery rates and support long-term production growth.
The planned expansion reflects Rio Tinto’s broader strategy of strengthening its exposure to minerals that support the global energy transition, with lithium expected to play an increasingly important role in electric vehicles and battery energy storage systems.
Source: MiningMagz