Rio Tinto advances Rincon Lithium Project With $2.5bn expansion

Rio Tinto has committed $2.5 billion to significantly expand its Rincon lithium project in Argentina. This project is central to the company’s goal of bolstering its lithium production capacity, addressing the surging global demand for battery-grade lithium carbonate driven by the energy transition.

The Rincon expansion is set to elevate annual production to 60,000 tonnes of battery-grade lithium carbonate. This includes a 3,000-tonne starter plant and a 57,000-tonne expansion plant, designed to operate sustainably and efficiently. Construction is scheduled to begin in mid-2025, subject to regulatory approvals, with production expected to commence in 2028. A three-year ramp-up will follow, delivering full operational capacity while creating extensive job opportunities and stimulating economic activity in the region.

Located in the “lithium triangle” of Argentina, the Rincon lithium project integrates advanced direct lithium extraction (DLE) technology. This innovation reduces water consumption, minimizes waste, and ensures consistent quality in producing battery-grade lithium carbonate. Jakob Stausholm, Chief Executive of Rio Tinto, emphasised that this technology underscores the company’s commitment to high environmental, social, and governance (ESG) standards, aligning with the industry’s evolving sustainability benchmarks.

Stausholm expressed confidence in Argentina’s economic reforms, highlighting how initiatives like the Incentive Regime for Large Investments (RIGI) offer reduced tax rates, accelerated depreciation, and regulatory stability for 30 years. These measures have made the country an attractive destination for major investments in lithium production capacity. Stausholm described the Rincon project as a “tier 1, world-class resource” positioned at the lower end of the cost curve, ensuring long-term profitability.

The Rincon lithium project not only reinforces Argentina’s ambitions to become a global lithium powerhouse but also enhances Rio Tinto’s portfolio of critical resources for the energy transition. The project is expected to have a mine life of 40 years, with recent assessments revealing 60% higher ore reserves than initially estimated at the time of acquisition. Such figures highlight the project’s strategic importance in Rio Tinto’s broader vision to secure leadership in sustainable resource development.

Argentina’s pivotal role in global lithium production is amplified by the Rincon expansion. Its favourable economic policies, skilled workforce, and resource-rich landscape position the country as a cornerstone of the future lithium supply chain. The addition of the Rincon operation will not only increase the country’s lithium production capacity but also cement its place as a reliable provider of battery-grade lithium carbonate to global markets.

Furthermore, Rio Tinto’s focus on the Rincon development aligns with the company’s commitment to advancing ESG principles. By employing DLE technology, the project will cut water usage in half compared to conventional methods, while delivering high-quality battery-grade lithium carbonate consistently. This approach strengthens partnerships with local communities in Salta province, ensuring that the benefits of the project extend beyond economic gains.

Looking forward, lithium is poised to become a foundational pillar of Rio Tinto’s commodity portfolio, alongside iron ore, aluminium, and copper. The Rincon expansion, coupled with the company’s proposed acquisition of Arcadium Resources, underscores Rio Tinto’s determination to lead the industry in sustainable lithium production capacity.

With a growing global focus on green technologies, the Rincon project will play a pivotal role in the energy transition. As governments and corporations strive to meet ambitious carbon neutrality goals, Rio Tinto’s investment ensures a secure and sustainable supply of battery-grade lithium carbonate, a critical component in electric vehicle batteries and renewable energy storage.