Rio Tinto to spend $2.5 billion to expand Argentina lithium project
Rewrites paragraph 1, updates details on other lithium ventures and market in paragraphs 2-3
Dec 12 (Reuters) -Rio Tinto RIO.AX will invest $2.5 billion to increase production capacity at its Argentina lithium project, it said on Thursday, as it seeks to cement its position as one of the world's biggest miners of the battery metal.
The investment follow's Rio's takeover of Arcadium Lithium ALTM.N in a $6.7 billion deal announced in October, and as prices of the metal used in electric vehicles (EVs) are weakened by Chinese oversupply and slowdown in EV sales.
Following the purchase of Arcadium, Rio is on track to become the world's third largest lithium miner, behind leader Albemarle ALB.N and Chile's SQM SQMA.SN.
As part of the ramp up, the Rincon project's capacity will reach 60,000 metric tons, including a 3,000-ton starter plant and 57,000-ton expansion plant, according to Rio Tinto. The Rincon project earlier had a capacity of 53,000 tons.
"The attractive long-term outlook for lithium driven by the energy transition underpins our investment in Rincon," Rio Tinto CEO Jakob Stausholm said.
Construction of the plant is scheduled to begin mid-2025, with initial production from Rincon is expected in 2028.
The investment is also in line with the South American nation's ongoing ambitions to become a world-leading lithium producer.
Rio had been banking on its Jadar project in Serbia to supply much of Europe's lithium needs but it could take at least two years to secure permits and the miner faces strong local opposition to its plans.
Reporting by Rishav Chatterjee in Bengaluru; Editing by Shounak Dasgupta and Barbara Lewis
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
