Rio Tinto has approved a $2.5 billion expansion of the Rincon project in Argentina, the company’s first commercial scale lithium operation.
Rincon’s capacity of 60,000 tonnes (t) of battery grade lithium carbonate per year is comprised of the 3000t starter plant and 57,000t expansion plant.
Rincon has an expected mine life of 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, generating significant job creation and economic opportunities for local businesses.
“The attractive long-term outlook for lithium driven by the energy transition underpins our investment in Rincon,” Rio Tinto chief executive Jakob Stausholm said.
“We are dedicated to developing this Tier 1, world-class resource at scale at the low end of the cost curve.
“We are equally committed to meeting the highest ESG (environmental, social and governance) standards, leveraging our advanced technology to halve the amount of water used in processing, while continuing to grow our mutually beneficial partnerships with local communities and Salta province.”
Staushold said Rio is building on Argentina’s supportive economic policies, skilled workforce, and exceptional resources as the company is positioning themselves to become one of the top lithium producers globally.
“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,” he said.
Located in the heart of the ‘lithium triangle’ in Argentina, the Rincon project consists of brine extraction using a production wellfield, processing and waste facilities, as well as associated infrastructure.
The project uses direct lithium extraction (DLE) technology, a process that supports water conservation, reduces waste and produces lithium carbonate more consistently than other methods.
Rincon has ore reserves 60 per cent higher than what Rio Tinto expected at the time of acquisition.
Rio’s new project supports the Argentina Government’s plans to become a world leading lithium producer.