Becoming the world’s second-largest lithium miner

Rio Tinto is on track to become the world’s second-largest lithium miner by 2035, according to new analysis by Benchmark Mineral Intelligence.

Benchmark’s analysis sees Rio in second spot, sitting only behind Albemarle and just above Pilbara Minerals (PLS).

The company’s new partnership with Chilean state-owned miner Codelco marks another bold step into lithium for the major and could be the move that pushes other mining majors to reconsider their position on the fast-growing battery mineral.

Under the agreement, Rio Tinto will invest up to $US900 million ($1.4 billion) to develop the Salar de Maricunga lithium project in Chile’s high Andes, acquiring a 49.99 per cent interest in Salar de Maricunga SpA, the vehicle through which Codelco holds its licences and concessions.

The deal comes at a time when global supply chains are under pressure to diversify away from China and secure access to critical minerals.

As nations seek ex-China sources of lithium to power electric vehicles and renewable energy storage, majors like Rio Tinto are taking early, strategic positions.

Benchmark Mineral Intelligence said the move should catch the attention of Rio’s global peers. For years, lithium was seen as too small, too volatile, and too crowded for the likes of BHP, Anglo American and Vale.

But Rio’s increasing presence, including its acquisition of Arcadium Lithium in 2024, is forcing a reassessment.

“Rio Tinto’s deal should provide a good reference for the corporate teams at these majors to refresh their own industry attractiveness profile and the potential pathways to enter the industry,” Benchmark associate director strategic advisory Ricardo Morales said.

“An additional tailwind for Rio’s move includes regulation and geopolitics creating the need for an ‘ex-China’ supply chain to feed the batteries Western countries will consume and manufacture.”