Rio Tinto Solidifies Lithium Ambitions with Key Chilean Partnership
- 23-May-2025 7:15 PM
- Journalist: Emilia Jackson
Global mining giant Rio Tinto has been officially named the preferred partner by Empresa Nacional de Miner铆a (ENAMI), Chile's state-owned mining company, for the development of the world-class Salares Altoandinos lithium project in the Atacama region. This significant announcement underscores Rio Tinto's aggressive strategy to become a leading player in the global lithium market, a critical commodity for the energy industry.
Under the terms of the proposal, Rio Tinto is set to acquire an initial 51% stake in the Salares Altoandinos project, with ENAMI retaining the remaining 49%. The company will provide an estimated $425 million in cash and non-cash contributions, including its proprietary Direct Lithium Extraction (DLE) technology, with cash contributions set to solely fund the initial pre-feasibility study and subsequent studies.
Jakob Stausholm, Rio Tinto Chief Executive, expressed the company's honor in being selected, highlighting the project's potential as a "world-class lithium development." He also emphasized the opportunity to deepen the partnership with ENAMI, building on existing interests in Nuevo Cobre and Salar de Maricunga, and supporting Chile's pivotal role in the supply of essential minerals for the energy transition.
This partnership further strengthens Rio Tinto's expanding South American lithium portfolio, complementing existing projects in Argentina (Rincon, Olaroz, Fenix, Sal de Vida, and Cauchari) and a recently announced joint venture with Codelco for the Salar de Maricunga project in Chile. The company also holds lithium assets in Canada (Nemaska Lithium) and Serbia (Jadar).
Despite recent volatility in spot lithium prices, which are down over 80% from their peak, Rio Tinto maintains a strong belief in the long-term outlook for the commodity. The company forecasts a compound annual growth rate for demand exceeding 10% through to 2040, anticipating a market deficit emerging by the end of this decade.
Rio Tinto is committed to impeccable ESG standards, emphasizing deep engagement with local communities, minimizing freshwater consumption through recycling, and implementing brine reinjection studies to reduce the environmental impact of extraction operations. In Chile, the company envisions developing a world-class copper and lithium district in the Atacama region, benefiting from synergies across its partnerships. In Argentina, the strategy involves developing existing operations into "super-hubs" to achieve significant scale and competitiveness, leveraging common infrastructure investments.
With these strategic moves, Rio Tinto is poised to significantly contribute to South America's role as a global lithium powerhouse and continues to evaluate Tier 1 opportunities worldwide as it builds a world-class lithium business.