London – Anglo-Australian mining company Rio Tinto has approved an investment of US$2.5 billion to expand the Rincón project, in the province of Salta, Argentina, the company’s first commercial-scale lithium operation. According to the company, this demonstrates its commitment to establishing a portfolio of first-class battery raw materials.
The plan envisages increasing production capacity to 60,000 tons per year of lithium for batteries, through the construction of a factory to be started in 2025, a project subject to approval of permits.
The start of production is scheduled for 2028, with operations advancing until reaching maximum capacity, which will generate an important number of jobs and economic opportunities for local companies.
For Jakob Stausholm, executive director of the Rio Tinto group, the attractive prospect of lithium driven by the energy transition supports investment in the location. “Thanks to Argentina’s exceptional resources, skilled workforce and favorable economic policies, we are in an excellent position to become one of the world’s leading lithium producers,” he said.
Argentina has the ambition to become one of the most important lithium producers in the world. Economic reforms and the Large Investment Incentive Regime (RIGI), recently approved by Congress, should provide a favorable environment for investments in this regard, with benefits such as lower taxes, accelerated depreciation and regulatory stability for 30 years.
