Benzinga - by Stjepan Kalinic, Benzinga Staff Writer.
A leading miner, Rio Tinto (NYSE:RIO), announced a $350 million investment in its Rincon project in Argentina. The largest global iron ore miner is looking to expand the lithium plant purchased from Rincon Mining for $825 million in 2022, casting a spotlight on the overlooked country which is emerging as a lithium powerhouse.
“The hard work of our Rincon team is laying the groundwork for our first lithium production by year's end,” Chief Executive Jakob Stausholm said for Reuters.
Rio Tinto plans to create a reliable source of high-quality lithium for the burgeoning EV market. The project aims to develop a battery-grade lithium carbonate plant with an annual capacity of 3,000 tons. This venture aligns with Rio Tinto’s commitment to decarbonize its operations by 2050 while catering to the surging demand for clean energy solutions.
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In a recent discussion, Rio Tinto's General Manager of Technical Development, Jared Osborne, reflected on the lithium market.
"There's in the order of the order 80-100 million tons of identified lithium globally in about 400 different deposits. That should be more than enough to assist with the energy transition," Osborne said.
"What we need to do to meet the demand is a combination of opening new mines and ramping up existing mines," he added, noting the importance of using renewable energy in the extraction process.
Argentina, forming part of the renowned “lithium triangle” alongside Chile and Bolivia, boasts significant lithium reserves, attracting investments from global mining entities. The country’s lithium production witnessed a 45% increase from 2022 to 2023, signaling its growing prominence in the global lithium market.
The Rincon project is situated in the Salta province, just north of the Catamarca province, which just halted new mining permits pending environmental assessment for local lithium mining. This resource-rich region is notorious for its arid climate, posing problems for water-intensive lithium extraction methods.
Yet, the newest technologies, such as direct lithium extraction, could solve this problem, allowing the companies to meet the energy transition goals while minimizing environmental impact.
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