Anglo-The massive Australian mining company Rio Tinto said Thursday that it would invest $2.5 billion to increase its production of lithium carbonate, a crucial component of batteries for electric vehicles, in Argentina.
“Rio Tinto has approved $2.5 billion to expand the Rincon project in Argentina, the company’s first commercial scale lithium operation,” the announcement read.
According to the US Geological Survey (USGS), 60% of the world’s lithium reserves are found in the so-called Lithium Triangle, which spans Argentina, Bolivia, and Chile and includes the mine in the northwest Salta region.
By 2028, Rio Tinto’s investment in Rincon is expected to increase its annual production capacity from 3,000 tonnes to 60,000 tonnes.
Argentina was the world’s fourth-biggest producer of lithium in 2023, after Australia, Chile and China, according to the USGS.
In July, the French mining group Eramet and its Chinese partner Tsingshan opened a lithium production plant in Salta.
Eramet chief executive Christel Bories said the plant would meet 15 percent of Europe’s lithium needs.
Bolivia is also trying to cash in on surging demand for the silvery-white metal, which is also used to make rechargeable batteries for smartphones, laptops and other devices besides e-vehicles.
This year Bolivia signed a deal with Russia’s Uranium One company to build a lithium extraction plant.
It also signed a contract with a subsidiary of the Chinese company CATL — the world’s largest battery manufacturer — to set up two lithium extraction sites with a joint capacity of 35,000 tonnes a year.
