Key facts
- Rio Tinto's lithium division is projected to be its fastest-growing unit.
- The company plans to increase lithium production capacity to 200,000 metric tons by 2028.
- Rio Tinto acquired Arcadium last year, which included mines, processing facilities, and deposits.
- The company is investing in direct lithium extraction (DLE) technology for future projects.
- Rio Tinto aims to bring new mines in Argentina and Canada online.
Rio Tinto anticipates its lithium business will experience the most rapid growth among its divisions, with plans to significantly increase production capacity by 2028 to serve the electric vehicle and battery storage markets. The company acquired U.S.-based Arcadium last year, a move that provided access to mines, processing facilities, and deposits across multiple continents, as well as a customer base including Tesla. This integration is proceeding amidst a challenging lithium market characterized by price volatility due to Chinese oversupply, though signs of recovery are emerging. Rio Tinto is developing new mines in Argentina and Canada, designed to be economical even with lower prices. Jérôme Pécresse, head of the company's aluminum and lithium unit, stated that delivering these projects on time and budget is a primary focus. He emphasized a strategy of bringing low-cost assets online for customers seeking long-term contracts with price floors and ceilings. Pécresse highlighted that the lithium market is in a growth phase, differentiating it from other major global commodities. Rio Tinto is also investing in direct lithium extraction (DLE) technology, a key factor in the Arcadium acquisition, with a DLE project expected to launch within a few years. While the growth from Arcadium could position Rio Tinto as a major lithium producer, the company's stated goal is not to be the largest, but to maintain relevance with customers through a substantial asset base.