12th Dec 2024 12:55
(Alliance News) - Rio Tinto PLC on Thursday said it would be expanding its Rincon project capacity in Argentina to 60,000 tonnes per year as it looks to capitalise on the "attractive long-term outlook for lithium".
The London-based diversified mining company said it has approved a USD2.5 billion investment in the firm's first commercial scale lithium operation, with this decision underpinned by the effects of the energy transition on the lithium's long term outlook.
Rio Tinto said the investment serves as a demonstration of its commitment to building a world-class battery portfolio.
The FTSE 100-listed miner said construction of the expansion plant, which has a capacity of 57,000 tonnes of battery grade lithium carbonate per year, is scheduled to begin in the middle of 2025. At full capacity, including the starter plant, Rincon's capacity will be 60,000 tonnes.
Rio Tinto added that first production is expected in 2028, with a three-year ramp up anticipated for it to reach full capacity, "generating significant job creation and economic opportunities for local businesses."
Its shares fell 0.7% to 5,047.43 pence on Thursday afternoon in London.
Rio Tinto Chief Executive Jakob Stausholm said: "The attractive long-term outlook for lithium driven by the energy transition underpins our investment in Rincon. We are dedicated to developing this tier 1, world-class resource at scale at the low end of the cost curve.
"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 Arcadium acquisition ensures that lithium will become one of the key pillars of our commodity portfolio for decades to come."
By Christopher Ward, Alliance News reporter
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