Rio Tinto has opened two new lithium processing facilities in Catamarca province, Argentina, at a combined cost of $1.4 billion, Reuters reported. The facilities, named Sal de Vida and the Fenix 1B expansion, are projected to produce 25,000 metric tons of lithium carbonate equivalent each year, with output going toward battery-making material for electric vehicles.
Both facilities use direct lithium extraction technology, known as DLE. Supporters of the technology say it is more environmentally sustainable than open-pit mining and evaporation ponds and substantially reduces the time needed to produce lithium. French miner Eramet began operating DLE technology at Centenario Ratones in Salta, Argentina, from late 2024.
Rio Tinto is aiming to lift its total Argentina output to 200,000 metric tons each year by 2028. Chief executive Simon Trott said the world needs more lithium and that Rio Tinto has targeted 200,000 tons of annual production capacity, with potential to push that figure even higher. The company's Rincon project in Salta province carries an expected annual output of 60,000 metric tons of lithium carbonate equivalent.
Argentina, Bolivia and Chile together form South America's Lithium Triangle, a region that holds 60% of global lithium reserves. Bolivia maintains strict state control over its lithium reserves, while Chile has declared lithium a strategic resource and operates a public-private model that, according to industry figures, can restrict investment. Projections from Argentina's Mining Secretariat indicate the country could surpass Chile in lithium production by 2029 and reach 573,000 metric tons of lithium carbonate equivalent by 2035.
The expansion positions Rio Tinto to supply more raw material for the global electric vehicle industry as battery manufacturers seek to secure lithium supply chains outside China-dominated processing networks.
Reporting: Reuters
Background: HRD, The Motley Fool Australia
Written by Pick & Scroll News from the reporting and documents linked above.
