Rio Tinto Completes Rincon Lithium Project Acquisition

Rio Tinto has completed the acquisition of the Rincon lithium project in Argentina for $825 million, after receiving approval from Australia’s Foreign Investment Review Board (FIRB).
 
In December 2021 a binding agreement was announced to purchase the project from Rincon Mining.
 
A sizeable undeveloped lithium brine project, Rincon is located in the heart of the lithium triangle in the Salta Province in Argentina, a hub for emerging greenfield projects. The project is a long life, scalable resource with the capability to produce battery-grade lithium carbonate. It has the potential to have one of the lowest carbon footprints in the industry.
 
Jakob Stausholm, Chief Executive, Rio Tinto, said, “Rincon strengthens our battery materials business and positions Rio Tinto to meet the double-digit growth in demand for lithium over the next decade, at a time when supply is constrained. We will be working with local communities, the Province of Salta and the Government of Argentina as we develop this project to the highest ESG standards.”
 
The proposal of the direct lithium extraction technology for the project has the potential of significantly increasing the lithium recoveries in comparison to solar evaporation ponds. A pilot plant is currently functioning at the site, and going further, the work will focus on continued optimization of the process and recoveries.
 
The market fundamentals for battery-grade lithium carbonate seem promising, as demand for lithium has been forecasted to grow by 25-35% annually over the next 10 years, with a significant supply-demand deficit expected in the second half of the decade.