Rio Tinto opens two Argentine lithium projects worth $1.4 billion

what happened

Argentina's President Javier Milei, Catamarca Governor Raúl Jalil and Rio Tinto CEO Simon Trott attended the formal inauguration of the Fénix 1B expansion and the Sal de Vida operation, TradingView reports. The two projects together required roughly $1.4 billion of investment.

Both sites produced their first output in the second quarter, earlier than the schedule had called for, and are now building volumes. At full capacity they will add 25,000 tonnes a year of lithium carbonate equivalent (LCE). Fénix 1B lifts the existing site by 10,000 tonnes, bringing its target to about 40,000 tonnes, while Sal de Vida, roughly 20 km northeast of Fénix, is designed for 15,000 tonnes.

Trott linked the projects to the company's global goal of 200,000 tonnes of LCE a year by 2028. Milei said the investment shows that Argentina's policy changes are attracting large companies.

why it matters

For the lithium market, the extra 25,000 tonnes of LCE means more supply, and rising output tends to weigh on prices. Rio Tinto's wider Argentine plan involves about $4 billion of growth capital, with around 70% expected to go to local suppliers.

market impact

Lithium: extra supply from Rio Tinto's Argentine projects adds pressure on prices

• ▼Lithium carbonate prices pressure down — new supply of 25,000 tonnes of LCE a year from Rio Tinto's projects

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