Rio Tinto opens two lithium plants in Argentina worth $1.4 billion

what happened

Rio Tinto has brought two new lithium plants online in Catamarca province in northwestern Argentina, according to Reuters. The projects are the Sal de Vida plant and the Fenix 1B expansion, with combined investment of $1.4 billion.

Once running at full capacity, the projects will add 25,000 metric tons of lithium carbonate equivalent per year. The flagship Rincon project in Salta province is expected to produce 60,000 tons annually, and the company wants Argentine output at 200,000 tons by 2028. Seeking Alpha reported the same figures.

Both sites use direct lithium extraction (DLE), a method supporters say is more sustainable than open-pit mines and evaporation ponds. Questions remain over costs, scalability and long-term performance.

why it matters

For the lithium market, this is another sign of supply growth in Argentina, which is trying to become a leading producer alongside Chile and Bolivia. A 30-year tax incentive scheme for large projects makes the country more attractive to investors, and government projections suggest it could overtake Chile by 2029.

market impact

Lithium: more Argentine supply puts pressure on metal prices; Rio Tinto expands its lithium business

• ▼Lithium carbonate pressure down — higher output in Argentina adds to market supply

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