Wedoany.com Report-Dec 14,Rio Tinto has approved $2.5 billion 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 comprises the 3,000-tonne starter plant and 57,000-tonne expansion plant. 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. First 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.
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. The project uses direct lithium extraction (DLE) technology, a process that supports water conservation, reduces waste and produces lithium carbonate more consistently than other methods.
Rincon is a large, long-life asset with ore reserves 60% higher than Rio Tinto 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.
This investment also supports Argentina’s ongoing ambitions to become a world-leading lithium producer. Argentina’s economic reforms and the new Incentive Regime for Large Investments (RIGI) provide a favourable 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.
