The Rio Tinto Group has announced plans to invest $2.5 billion in a lithium mine in Argentina, marking a significant step in President Javier Milei’s agenda to deregulate the economy and attract foreign investment. The UK-based company will develop a processing plant at the Rincon mine, aiming for an annual production capacity of 60,000 metric tons of lithium carbonate. Construction is slated to begin mid-next year, pending necessary permits.
The project aligns with Argentina’s RIGI incentives program, enacted last year to provide tax, currency, and trade benefits for energy and mining sectors over the next 30 years. Rio Tinto CEO Jakob Stausholm, who plans to meet Milei in Italy, praised the program as a model framework for foreign investment.
Despite falling lithium prices and slowed expansion by other miners, Rio Tinto remains committed to advancing its lithium projects, including Rincon, which will use direct extraction methods to conserve water and reduce waste. Located in the lithium triangle of South America, Rincon is part of a region holding over half of global lithium resources.
Rio Tinto’s expansion comes as competition heats up in Argentina, with companies like Eramet SA and Posco Holdings Inc. launching new plants this year. The firm is also targeting copper reserves, holding a stake in the Los Azules project, which recently passed a key permitting milestone. Stausholm emphasized Rio’s commitment to delivering on both lithium and copper developments in Argentina.
