Rio Tinto has completed its acquisition of the Rincon lithium project in Argentina after receiving approval from Australia’s Foreign Investment Review Board (FIRB).
It comes after Rio Tinto’s Serbian lithium aspirations were quashed in January following Serbia’s withdrawal of its plan to build Rio Tinto’s Jadar lithium-borates project.
In February, the company said it was “exploring all options” and “reviewing the legal basis” of the Serbian Government’s decision, with hopes to turn the decision around.
The major miner has purchased the Rincon project from Rincon Mining for $825 million, a transaction that was first announced in December 2021.
Located in the Salta Province of Argentina, Rincon is a large undeveloped lithium brine project that has the potential to be a long-life, scaleable resource capable of producing battery-grade lithium carbonate.
A direct lithium extraction technology has been proposed for Rincon, which has the potential to significantly increase lithium recoveries when compared to solar evaporation ponds. Rincon currently has a pilot plant on site to test the innovative extraction method.
Rio Tinto chief executive Jakob Stausholm said Rincon would be a key asset moving forward.
“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,” he said.
“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.”
Rio Tinto expects lithium demand to grow 25–35 per cent per annum over the next decade, with a significant supply squeeze forecast for the second half of this decade.