Rio Tinto to invest $2.5bn to expand Argentina's Rincon project
By Michele Maatouk
Date: Thursday 12 Dec 2024
(Sharecast News) - Rio Tinto said on Thursday that it will invest $2.5bn to expand the Rincon project in Argentina, its first commercial scale lithium operation.
The miner said plans for the investment demonstrate 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. The mine life is expected to be 40 years, with construction of the expanded plant scheduled to begin in mid-2025, subject to permitting.
First production is expected in 2028 followed by a three-year ramp up to full capacity, "generating significant job creation and economic opportunities for local businesses".
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 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."
He said that this investment, along with the company's Arcadium acquisition, ensures that lithium will become "one of the key pillars of our commodity portfolio for decades to come".
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