UK-Australian mining firm Rio Tinto is intensifying its commitment to the lithium sector with a series of strategic investments aimed at securing a diversified supply chain for critical minerals essential to the energy transition.
The company this week announced a partnership with Chile's state-owned mining firm, Codelco, to develop the Salar de Maricunga lithium project. Under the agreement, Rio Tinto will invest up to $900mn for a 49.99pc stake, with Codelco retaining majority ownership in line with Chile's national lithium strategy. The Maricunga salt flat, Chile's second-largest lithium reserve, boasts some of the highest lithium grades globally and will use direct lithium extraction technology, also being tested by Rio Tinto at its Rincon project in Argentina.
"This was not a small-scale pilot. (Rincon) was a large-scale pilot plant. This technology works and certainly works in Brines in Argentina. There's no reason why it wouldn't in Chile, which has higher concentrations of lithium, so should be easier to process," an insider to the deal told Argus,adding that commercialisation is expected by 2029.
The collaboration aligns with Codelco's strategic shift to diversify beyond copper into lithium, reflecting Chile's broader goal to reclaim its position as the world's leading lithium producer from Australia. The partnership also builds on existing synergies between the two companies, including shared infrastructure and environmental initiatives from their Nuevo Cobre copper project.
Beyond South America, Rio Tinto has made investments to solidify its global lithium presence. In March this year, it completed its acquisition of Arcadium Lithium for $6.7bn, gaining access to operations in Argentina, Australia and the US and establishing itself as one of the world's top lithium producers. Arcadium's assets include producing operations with an existing capacity of 75,000t of lithium carbonate equivalent (LCE) per year and plans to expand to more than 200,000t by 2028.
Rio Tinto is also advancing the Jadar project in Serbia, which on completion could supply up to 90pc of Europe's current lithium needs. The Jadar deposit contains the unique mineral jadarite, and there are plans for an underground mine capable of producing about 58,000 t/yr of refined battery-grade lithium carbonate.
These strategic moves highlight Rio Tinto's commitment to becoming a major player in the lithium market. By 2030, the company could be responsible for up to 300,000t LCE of lithium production, making it one of the largest single producers in the world.
"The world watches with interest how Rio will fare in the lithium space, but it would be great to see measurable success rather than a steady stream of hype. Let's see how Rincon develops," Joe Lowry, host of the Global Lithium podcast, said.
