From ore to more: Rio Tinto charges ahead in the lithium revolution

London, 4 December 2024 – At its annual Investor Seminar in London, Rio Tinto unveiled a bold strategy to redefine its future by leaning heavily into the global energy transition. The company’s focus on lithium, a critical component for batteries and renewable energy systems, emerged as the cornerstone of its growth plans, signalling a pivotal shift in its portfolio.

From the achievement of first lithium production at its Rincon project in Argentina to the planned acquisition of Arcadium Lithium, Rio Tinto is making a clear statement: it is positioning itself at the forefront of the clean energy revolution.

A strategic pivot

For over a century, Rio Tinto has been synonymous with staples like iron ore and aluminium. However, with global demand for lithium forecast to grow sixfold by 2035, the company is now setting its sights on becoming a leader in this burgeoning market. Jakob Stausholm, Rio Tinto’s Chief Executive, underscored this ambition during the seminar.

“Lithium is absolutely a cornerstone of the energy transition,” Stausholm said. “With the Arcadium acquisition, we will hold one of the largest lithium resource bases in the world, positioning us to meet future demand sustainably and profitably.”

The acquisition of Arcadium, expected to close by mid-2025, will enable Rio Tinto to consolidate its operations in Argentina’s lithium-rich region. The company plans to establish "super sites," which will integrate advanced technology and economies of scale to drive efficiency and environmental sustainability.

Rincon: a case study in speed and sustainability

Rio Tinto’s progress at the Rincon lithium project in Argentina was celebrated as a hallmark of its operational excellence. Acquired in 2022, Rincon achieved first lithium production within just 32 months. The project employs direct lithium extraction (DLE), a technology designed to minimise water use and environmental impact.

“This achievement gives us immense confidence in our ability to scale up sustainably,” said Guillermo Caló, Managing Director of the Rincon project. “We’ve shown that lithium can be produced responsibly, even in extreme environments like the Andes at 3,700 metres above sea level.”

The company’s plans to expand Rincon’s production capacity to 60,000 tonnes per year further underscore its commitment to delivering significant supply to the global market.

Building on momentum

The acquisition of Arcadium will solidify Rio Tinto’s lithium footprint, bringing additional resources and processing facilities in Argentina, Canada, and other key locations. These assets are positioned at the lower end of the cost curve, offering a competitive advantage.

“Our approach is about creating a sustainable and diversified portfolio,” said Sinead Kaufman, Chief Executive of Minerals. “The combined potential of Rincon and Arcadium’s assets not only aligns with our ESG commitments but also with the rapid growth of electric vehicles and renewable energy markets.”

By 2030, Rio Tinto expects its lithium operations to account for a significant portion of its production growth, contributing to an overall compound annual growth rate of 4 percent.

A broader vision for growth

Rio Tinto’s lithium strategy is part of a broader vision that includes investments in copper and aluminium, two other critical materials for the energy transition. The company is also advancing major projects like Simandou in Guinea and Oyu Tolgoi in Mongolia, which are expected to drive growth over the next decade.

“Lithium is a highlight, but it’s just one piece of a larger puzzle,” Stausholm noted. “We’re aligning our entire portfolio to meet the materials demand of the future, whether it’s for electric vehicles, renewable energy, or urbanisation in emerging markets.”

Commitment to sustainability

Sustainability remains central to Rio Tinto’s strategy. The company is leveraging technology to reduce its environmental footprint and engage with local communities to secure long-term partnerships. The integration of advanced methods such as direct lithium extraction and reinjection technologies demonstrates its focus on balancing growth with environmental responsibility.

“We’re not just talking about the energy transition; we’re enabling it,” Kaufman said. “Our approach is grounded in science, sustainability, and a genuine commitment to making a difference.”

The road ahead

As Rio Tinto navigates this strategic pivot, the company’s leadership remains confident in its ability to deliver long-term value for shareholders while addressing the challenges of a rapidly changing global economy. The combination of operational excellence, technological innovation, and a robust financial position positions Rio Tinto as a trailblazer in the mining industry.

“The materials we produce have never been more critical,” Stausholm said. “By focusing on lithium and other key commodities, we are not only meeting the demands of today but shaping the future.”

With lithium at the heart of its strategy, Rio Tinto’s transition marks a defining moment for the company—and potentially, for the global energy landscape.