Rio Tinto has approved a $2.5 billion expansion of its first commercial scale lithium operation in a bid to join the lithium race before the dust settles on its $10 billion Arcadium takeover next year.
Located in the heart of the ‘lithium triangle’ in Argentina, Rio’s Rincon project boasts ore reserves already confirmed to be 60 per cent higher than when the miner first took control of the site in 2022.
The expansion will see Rincon’s production of battery grade lithium carbonate per year boosted to 60,000 tonnes.
Despite the current softening in lithium prices, Rio Tinto chief executive Jakob Stusholm is confident the investment will be worth its weight in silvery-white gold.
“The attractive long-term outlook for lithium driven by the energy transition underpins our investment,” Stausholm said.
“We are dedicated to developing this Tier 1, world-class resource at scale at the low end of the cost curve.”
Rincon’s 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.
“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,” Stausholm said.
“This investment alongside our proposed Arcadium acquisition ensures that lithium will become one of the key pillars of our commodity portfolio for decades to come.”
With lithium beginning to fill a major spot in Rio’s 2025 bingo card, eyes are turning to the major’s plans for the Arcadium assets, which includes the Mt Cattlin lithium mine in Western Australia.
Rio is in the process of completing its $10 billion takeover of Arcadium, which is expected to settle in mid-2025.
Arcadium announced it would be hitting pause on Mt Cattlin in September this year, remaining firm the mine will not be closed and will play a big part in Australia’s lithium future.
Fuelled by a hunger for lithium and set to take the reins next year, only time will tell what Rio’s plans for the mine and WA’s lithium industry will hold.
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