Rio Tinto advances Argentina lithium with $1 billion yearly spend

Rio Tinto is investing approximately $1 billion annually in Argentina to expand its lithium operations across Catamarca, Salta, and Jujuy. Jérôme Pécresse, the company's chief executive of Aluminium and Lithium, outlined the strategy during Argentina Week in Paris, calling the country the cornerstone of the miner's lithium business.

The company currently generates all its lithium output in Argentina, where existing operations produce about 60,000 tonnes. Commissioning Sal de Vida and Fénix 1B in Catamarca, which together represent an investment of nearly $1.3 billion, will lift capacity to 80,000 tonnes. In Salta, Rio Tinto is building the Rincón project with an investment of over $2 billion, backed in part by IFC financing from the World Bank. Rincón will raise total capacity to approximately 140,000 tonnes, moving toward a global target of 200,000 tonnes of lithium carbonate equivalent by 2028, three-quarters of which will come from Argentina.

Two of the projects operate under Argentina's RIGI incentive framework: Fénix 1B, which is set to become the first operational RIGI project, and Rincón. Beyond lithium, Pécresse noted Rio Tinto is also pursuing global copper opportunities, including its involvement in the Los Azules project in Argentina.

Pécresse stated that continued expansion requires political and economic stability alongside infrastructure improvements. The company currently employs 2,000 people in the Puna region, aiming to reach 3,000. While Rio Tinto spends $15 million annually building roads in Catamarca and develops its own airstrips, solar projects, and gas compression facilities, Pécresse noted the operation depends on public infrastructure such as rail networks, including the Belgrano Cargas privatization.