Rio Tinto bets big on Lithium Triangle’s brine riches

Rio Tinto (ASX, LON: RIO) is doubling down on lithium, with chief executive Jakob Stausholm declaring that South America’s Lithium Triangle is the ideal region to secure the metal critical to the energy transition. Speaking at the Bank of America Global Metals, Mining and Steel Conference on Tuesday, Stausholm said that brine resources in Argentina, Chile and Bolivia offer the best chance for the world to access low-cost, high-quality lithium.“The Lithium Triangle is the optimal location to develop lithium projects that can meet global demand and for miners to get to the bottom of the cost curve,” Stausholm said. “From both a resource and production cost perspective, the brines in the area are unmatched.”Rio Tinto is investing $2.5 billion to scale up its Rincon lithium project in Argentina, aiming to increase production capacity to 60,000 tonnes per year by 2028. The move is part of the company’s broader strategy to establish itself as a dominant force in critical minerals, particularly those tied to electric vehicles and stationary battery storage.Stausholm also addressed investor concerns about the viability of direct lithium extraction (DLE), a method gaining traction for its efficiency and lower environmental impact. “We were new to DLE, so we built a starter plant and saw the technology worked,” he said. “But when we acquired Arcadium Lithium, we gained access to 28 years of DLE experience. They invented it. We’re not experimenting—we’re scaling proven technology.”With the $6.7 billion Arcadium acquisition already closed and the assets now integrated into a new division, which includes Rincon, Stausholm believes Rio Tinto is positioned to become a global leader in DLE. He emphasized that the brine-based method allows direct production of battery-grade lithium, bypassing the expensive, multi-step processing that hard rock sources require.Rio Tinto Chief Executive Jakob Stausholm at the Rincon lithium project in Argentina. (Image: Jakob Stausholm | LinkedIn.) Stausholm also highlighted Argentina’s recently passed Incentive Regime for Large Investments (RIGI) legislation, which aims to stabilize investment conditions in a country notorious for economic volatility. “It’s a game-changer,” he said. “It offers long-term security through international arbitration if conditions shift. Combine that with the International Monetary Fund (IMF)-backed economic reforms and the early lifting of foreign exchange controls, it’s clear that Argentina is moving in the right direction.”While lithium remains a relatively small market compared to Rio Tinto’s traditional iron ore and copper portfolio, Stausholm sees rapid growth ahead. The company plans to expand the capacity of the asset inherited from Arcadium to over 200,000 tonnes of lithium carbonate equivalent (LCE) annually by 2028.It is also adding lithium mines in Argentina and Australia, as well as processing facilities in the US, China, Japan and the UK. Its customer base would include major names, such as Tesla, BMW and General Motors.Stausholm added that Rio doesn’t need more mergers and acquisitions to expand its lithium footprint. “With Arcadium and Rincon, we have scale, proven technology, and the right assets. Now it’s about execution.”European lithium hopesBeyond South America, the world’s second largest miner is also trying to revive its stalled Jadar project in Serbia. The country halted the $2.4 billion development in 2022 following widespread protests against the proposed mine on environmental concerns.In July 2024, Rio secured a partial victory when Serbia reinstated its licence to develop the project. The company still needs to secure the company still needs to obtain environmental and construction permits before it can move forward.The Serbian parliament is still debating a proposal to ban lithium and borate mining, which, if passed, would effectively block the project.The Jadar project has also drawn scrutiny at the European level. In March, the European Union unveiled its list of 47 strategic raw material projects under the Critical Raw Materials Act (CRMA), but omitted non-EU developments — including Jadar. That exclusion fuelled speculation the decision was influenced by controversy surrounding Rio Tinto’s Serbian mine.Illustration of the Jadar above-ground facilities. (Image courtesy of Rio Tinto Serbia.)The European Commission has since stated it will open a new application process later this year to include strategic projects from outside the EU. If Jadar makes the next list, it could gain greater access to European funding. However, it would still fall short of the benefits reserved for EU-based projects, such as fast-tracked permits and direct subsidies.With projected output of 58,000 tonnes of refined battery-grade lithium carbonate annually, Jadar would be Europe’s largest lithium mine. It could supply enough material to power one million electric vehicles and cover 90% of the continent’s current lithium demand.Stausholm reaffirmed that Rio’s approach to lithium remains grounded in fundamentals. “We’re not banking on where lithium prices go. We’re focused on positioning ourselves at the bottom of the cost curve—and we’re confident we can stay there,” he said.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com