Anglo-Australian mining giant Rio Tinto has announced a groundbreaking $2.5 billion investment to expand its lithium project at the Salar de Rincón in Salta, Argentina. This milestone development underscores the company’s commitment to securing a leading position in battery materials production and advancing the global energy transition.
The project involves the extraction of brine and processing it into battery-grade lithium carbonate, with an annual production capacity of up to 60,000 tonnes. This includes a state-of-the-art facility that employs Direct Lithium Extraction (DLE) technology. This method significantly reduces water usage and minimises waste, ensuring a more sustainable environmental footprint.
Construction of the expanded plant is expected to commence by mid-2025, subject to permitting, with initial production slated for 2028. With an estimated 40-year lifespan, the project is set to deliver substantial employment and economic opportunities for the local region.
Rio Tinto plans to register this investment under Argentina’s Large-Scale Investment Incentive Programme (RIGI), which offers foreign investors regulatory stability, lower tax rates, and accelerated depreciation benefits. Jakob Stausholm, Rio Tinto’s Chief Executive, commented:
"The long-term outlook for lithium, driven by the energy transition, underpins our investment in Rincón. We are dedicated to meeting the highest ESG standards and strengthening our partnerships with local communities and the Salta province."
This investment reinforces both Rio Tinto’s position in the global lithium market and Argentina’s emerging role as a major player in this crucial industry. With exceptional resources and investor-friendly policies, Argentina is well-placed to become a top global lithium producer in the coming years.
The announcement follows Rio Tinto’s recent $6.7 billion acquisition of Arcadium Lithium, significantly expanding its portfolio across Argentina, Australia, Canada, and China. These strategic moves ensure that lithium remains a cornerstone of Rio Tinto’s portfolio for decades to come.
Through these initiatives, Rio Tinto underscores its commitment to sustainability, technological innovation, and economic development in Argentina, positioning itself as a global leader in the energy transition.
