(Energy Analytics Institute, 12.Dec.2024) — Rio Tinto eyes investing $2.5bn to expand the Rincon project in Argentina, the company’s first commercial scale lithium operation, demonstrating its commitment to building a world-class battery materials portfolio.
Rincon’s capacity of 60,000 tonnes of battery grade lithium carbonate per year is comprised of the 3,000-tonne starter plant and 57,000-tonne expansion plant, the company said 12 Dec. 2024 in an official statement.
This investment supports Argentina’s ongoing ambitions to become a world-leading lithium producer, Rio Tinto said in another statement on its website.
Argentina’s economic reforms — under president Javier Milei — 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, protecting the project from future policy changes, as well as enhanced investor protections, Rio Tinto added.
“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. We are equally committed to meeting the highest ESG 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,” Rio Tinto Chief Executive Jakob Stausholm said in the statement.
Rincon’s mine life is expected to be 40 years, with construction of the expanded plant scheduled to begin in mid-2025, subject to permitting.
Initial 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 company said.
“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,” Stausholm said.
Rincon lithium project
The Rincon lithium project is a large, low-cost lithium-brine asset located in the heart of the ‘llithium triangle’ in Argentina. The project will be a valuable source of rapidly produced, high-quality lithium for the global energy transition, according to the details on Rio Tinto’s website.
The project consists of brine extraction using a production wellfield, processing and waste facilities, as well as associated infrastructure. We’re using direct lithium extraction (DLE) technology, a process that supports water conservation, reduces waste and produces lithium carbonate more consistently than other methods.
The investments earmarked follow on Rio Tinto’s achievement of producing first lithium at the Rincon 3000 starter plant in Nov. 2024, only 32 months after completing acquisition of the greenfield project.
“We’re committed to advancing the project safely, meeting all regulatory requirements, and ensuring operational readiness on site. We’ll continue to engage with communities, the province of Salta and the Government of Argentina to build on the strong foundations developed since the start of the project in 2022,” Rio Tinto said in another statement on its website.
Argentina’s lithium triangle
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.
Rincon is a large, long-life asset with Ore Reserves 60% higher than we assumed at the time of acquisition. It is expected to be in the first quartile of the cost curve, demonstrating resilience and ability to operate profitably through the cycle, according to Rio Tinto.
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