Lithium | Rio Tinto to Invest $2.5 Billion to Expand Rincon Lithium Project Capacity to 60,000 Tonnes Per Year

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Lithium | Rio Tinto to Invest $2.5 Billion to Expand Rincon Lithium Project Capacity to 60,000 Tonnes Per Year

Date：2024-12-15

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Keyword tags： Lithium S.America Rio Tinto

Rio Tinto announced on December 14th that the company has approved an investment of $2.5 billion to expand the annual production capacity of battery-grade lithium carbonate at Argentina's Rincon lithium project to 60,000 tonnes. This marks the company's first commercial-scale lithium operation, demonstrating its commitment to building a world-class battery materials portfolio.

The 60,000-tonne annual capacity of battery-grade lithium carbonate for Rincon's lithium project includes a 3,000-tonne starter plant and a 57,000-tonne expansion plant. The mine life of Rincon is expected to be 40 years. Construction of the expanded plant is 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.

Rio Tinto Chief Executive Jakob Stausholm stated that the attractive long-term outlook for lithium, driven by the energy transition, underpins the company's investment in the Rincon lithium project. Rio Tinto is dedicated to developing this tier-1, world-class resource at scale and at the low end of the cost curve, while also meeting the highest ESG standards. He also mentioned that Rio Tinto's advanced technology can halve the amount of water used in lithium processing and continue to grow mutually beneficial partnerships with local communities and the province of Salta.

"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. This investment, alongside our proposed acquisition of Arcadium, ensures that lithium will become one of the key pillars of our commodity portfolio for decades to come."

The Rincon project, located in the heart of Argentina's 'lithium triangle,' includes brine extraction using a production wellfield, processing and waste facilities, as well as associated infrastructure. Rincon is a large, long-life asset with ore reserves 60% higher than initially assumed at the time of acquisition, and it is expected to be in the first quartile of the cost curve, demonstrating resilience and the ability to operate profitably through the cycle. The project employs direct lithium extraction (DLE) technology, which supports water conservation, reduces waste, and produces lithium carbonate more consistently than other methods.

Rio Tinto also stated that Argentina's economic reforms and the new Incentive Regime for Large Investments ('RIGI') provide a favorable environment for investment, offering benefits such as lower tax rates, accelerated depreciation, and regulatory stability for 30 years. This protects the project from future policy changes and enhances investor protections.

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