British-Australian mining giant Rio Tinto has announced a $2.5 billion investment to expand lithium carbonate production at its Rincón de Salta project, aiming to reach a total capacity of 60,000 tonnes per year. Additionally, the company will invest $35 million in McEwen Copper’s Los Azules copper project in San Juan.
This major investment strengthens Rio Tinto’s presence in Argentina, aligning with its strategy to secure key minerals for the global energy transition.
With the rise of electromobility and the growing demand for lithium-ion batteries, Rio Tinto is betting heavily on Argentina, home to some of the world’s richest lithium reserves.
The expansion at Rincón de Salta will involve brine extraction through a network of production wells, along with the construction of processing and effluent treatment facilities. The production plan consists of two phases:
The company estimates a 40-year project lifespan, with construction of the expanded plant set to begin in mid-2025. Initial production is expected by 2028, followed by a three-year ramp-up period to reach full capacity.Economic and employment impact:
Beyond boosting lithium supply, the project will create significant job opportunities and provide new business prospects for local suppliers.Government Support and the Large Investment Incentive Regime (RIGI)Rio Tinto’s expansion in Argentina will be part of the Large Investment Incentive Regime (RIGI), introduced by the government of Javier Milei to attract foreign capital.The company has highlighted that Argentina’s recent economic reforms and the RIGI create a favourable investment environment, offering key benefits such as:
With world-class mineral resources, a skilled workforce, and a more predictable investment climate, Argentina is in a strong position to become a leading global lithium producer.Copper Expansion: Rio Tinto Invests in Los Azules, San JuanAlongside lithium, Rio Tinto is also increasing its presence in the copper sector, another critical mineral for the energy transition and renewable technologies. Through its technology subsidiary Nuton, the company will invest $35 million in McEwen Copper’s Los Azules project, located in San Juan province.This project is in an advanced exploration stage and has achieved record-breaking drilling figures in recent years:
Los Azules is ranked as the eighth-largest copper project in the world by resource size, making it one of Argentina’s most promising mining developments.Michael Meding, Vice President of McEwen Copper and General Manager of Los Azules, emphasised that this marks Rio Tinto’s fourth investment in the project, bringing its total commitment to $100 million.Argentina: A Key Player in the Global Energy TransitionRio Tinto’s investments in lithium and copper reinforce Argentina’s position as a strategic hub for the clean energy transition. Both lithium and copper are essential materials for battery storage, renewable energy infrastructure, and electric vehicles.With an increasingly attractive investment environment, world-class natural resources, and a growing mining industry, Argentina is solidifying its role as a global leader in sustainable mining.
