Mining giant Rio Tinto has announced a $2.5 billion investment to expand its Rincon lithium project in Argentina, with plans to produce up to 60,000 tonnes of battery-grade lithium carbonate annually. The expansion, pending regulatory approval, is expected to commence in mid-2025, with production slated for 2028.
Located in Argentina’s renowned “lithium triangle,” the Rincon mine will feature a two-phase production strategy. A starter plant will initially yield 3,000 tonnes of lithium carbonate annually, while an expansion facility will add another 57,000 tonnes. The company aims to reach full operational capacity three years after production begins.
The project employs direct lithium extraction (DLE) technology, which conserves water and offers higher efficiency compared to conventional methods. Rio Tinto CEO Jakob Stausholm highlighted the environmental benefits, stating, “We are 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.”
The Rincon mine is expected to operate for at least 40 years, aligning with Rio Tinto’s ambition to make Argentina a leading lithium producer. Stausholm emphasized the project’s role in the energy transition, adding, “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. The attractive long-term outlook for lithium driven by the energy transition underpins our investment in Rincon.”
The Rincon investment follows Rio Tinto’s $6.7 billion acquisition of U.S.-based Arcadium Lithium in October 2023. This acquisition expanded the company’s access to lithium mines, processing facilities, and deposits across Argentina, Australia, Canada, and the U.S., solidifying its footprint in the rapidly growing lithium market.
Rio Tinto’s investment in the Rincon project underscores its strategy to capitalize on surging demand for lithium, a critical component in batteries for electric vehicles and renewable energy storage. With its sustainable practices and technological advancements, the company is positioning itself as a leader in the global energy transition.
