Rio Tinto to buy Rincon lithium project in Argentina for $825m

Miner Rio Tinto has agreed to buy the Rincon lithium project in Argentina from Rincon Mining for $825m (£622.6).

Rio said the deal demonstrates its commitment to build its battery materials business and strengthen its portfolio for the global energy transition.

Rincon is a large undeveloped lithium brine project located in the heart of the lithium triangle in the Salta Province of Argentina, an emerging hub for greenfield projects. The project is a long life, scaleable resource capable of producing battery grade lithium carbonate.

It has the potential to have one of the lowest carbon footprints in the industry that can help deliver on Rio’s commitment to decarbonise its portfolio, the company said.

Chief executive Jakob Stausholm said: "This acquisition is strongly aligned with our strategy to prioritise growth capital in commodities that support decarbonisation and to continue to deliver attractive returns to shareholders.

"The Rincon project holds the potential to deliver a significant new supply of battery-grade lithium carbonate, to capture the opportunity offered by the rising demand driven by the global energy transition. It is expected to be a long life, low-cost asset that will continue to build the strength of our Battery Materials portfolio, with our combined lithium assets spanning the US, Europe and South America."

Rincon Mining is owned by funds managed by private equity group Sentient Equity Partners.