Rio Tinto completes acquisition of Rincon lithium project

Rhea-AI Summary

Rio Tinto has finalized the acquisition of the Rincon lithium project in Argentina for $825 million, following approval from Australia’s Foreign Investment Review Board. The agreement with Rincon Mining was first announced in December 2021. Rincon is a significant undeveloped lithium project located in the lithium triangle, capable of producing battery-grade lithium carbonate with low carbon emissions. The deal positions Rio Tinto to meet growing lithium demand, projected to increase 25-35% annually over the next decade.

Positive

• Acquisition strengthens Rio Tinto's battery materials business, positioning for high lithium demand growth.
• Rincon's direct lithium extraction technology promises higher recovery rates compared to traditional methods.
• Project located in a strategic region for lithium production, enhancing future market competitiveness.

Negative

• None.

MELBOURNE, Australia--(BUSINESS WIRE)-- Rio Tinto has completed the acquisition of the Rincon lithium project in Argentina for $825 million, following approval from Australia’s Foreign Investment Review Board (FIRB).

A binding agreement to purchase the project from Rincon Mining, a company owned by funds managed by the private equity group Sentient Equity Partners, was announced in December 2021.

Rincon is a large undeveloped lithium brine project located in the heart of the lithium triangle in the Salta Province of Argentina, an emerging hub for greenfield projects. The project is a long life, scaleable resource capable of producing battery grade lithium carbonate. It has the potential to have one of the lowest carbon footprints in the industry.

Rio Tinto Chief Executive Jakob Stausholm 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 direct lithium extraction technology proposed for the project has the potential to significantly increase lithium recoveries as compared to solar evaporation ponds. A pilot plant is currently running at the site and further work will focus on continuing to optimise the process and recoveries.

The market fundamentals for battery grade lithium carbonate are strong, with lithium demand forecast to grow 25-35% per annum over the next decade with a significant supply demand deficit expected from the second half of this decade.

This announcement is authorised for release to the market by Steve Allen, Rio Tinto’s Group Company Secretary.

riotinto.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20220328005434/en/

Please direct all enquiries to media.enquiries@riotinto.com



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Category: Rincon

Source: Rio Tinto

FAQ

What is the value of the Rincon lithium project acquisition by Rio Tinto?

Rio Tinto acquired the Rincon lithium project for $825 million.

When was the acquisition agreement for the Rincon lithium project announced?

The acquisition agreement was announced in December 2021.

What is the significance of the Rincon lithium project for Rio Tinto?

The Rincon lithium project strengthens Rio Tinto's position in the battery materials market to meet increasing lithium demand.

How does the Rincon lithium project impact Rio Tinto's sustainability efforts?

The project is expected to have one of the lowest carbon footprints in the lithium industry, aligning with Rio Tinto's ESG standards.

What is the projected growth in lithium demand over the next decade?

Lithium demand is forecasted to grow 25-35% per annum over the next decade.