Rio Tinto has approved a $2.5 billion investment to expand the Rincon lithium project in Argentina, marking the company’s first large-scale lithium operation and reinforcing its commitment to building a leading battery materials portfolio.
The expanded Rincon project will have an annual capacity of 60,000 tonnes of battery-grade lithium carbonate, with the initial 3,000-tonne starter plant and a 57,000-tonne expansion plant. The project is expected to have a mine life of 40 years. Construction of the expanded plant is scheduled to begin in mid-2025, contingent on permitting, with first production anticipated in 2028. The ramp-up to full capacity will take three years, creating significant local employment and economic opportunities.
Rio Tinto CEO Jakob Stausholm stated, “The strong long-term outlook for lithium, driven by the global energy transition, supports our investment in Rincon. We are committed to developing this world-class, tier-1 resource at scale, focusing on low-cost production. We also remain dedicated to upholding the highest ESG standards, using advanced technology to reduce water consumption in processing, and fostering beneficial partnerships with local communities and Salta province.”
The Rincon project, located in Argentina’s “lithium triangle,” involves brine extraction through a production wellfield, processing and waste facilities, and associated infrastructure. The project utilizes direct lithium extraction (DLE) technology, which improves water conservation, reduces waste, and offers more consistent lithium carbonate production compared to traditional methods.
The Rincon asset has Ore Reserves 60% higher than previously estimated, positioning it in the first quartile of the global cost curve. This further highlights the project’s long-term resilience and profitability across market cycles.
This investment aligns with Argentina’s ambitions to become a leading global lithium producer. The country’s economic reforms, including the new Incentive Regime for Large Investments (RIGI), provide a favorable investment environment with benefits such as lower tax rates, accelerated depreciation, and long-term regulatory stability, ensuring protection from future policy changes and enhancing investor confidence.
The announcement has been authorized for release to the market by Andy Hodges, Rio Tinto’s Group Company Secretary.
