Rio Tinto expects faster growth in the lithium sector compared to traditional copper and iron ore sectors, aiming to meet the increasing demand from the electric vehicle and energy storage industries. The multinational group, according to Reuters, plans to increase its lithium production capacity from 61,000 metric tons this year to 200,000 tons by 2028.
The catalyst for this shift was last year’s acquisition of the American company Arcadium, which secured Rio Tinto access to mines on four continents, processing facilities, and a strong client portfolio, including Tesla. Despite the slump in metal prices due to Chinese oversupply, the company is focusing on developing low-operating-cost units in Argentina and Canada. As explained by the head of the aluminum and lithium division, Jérôme Pécresse, the commercial strategy is based on entering into long-term contracts with predetermined price limits, in order to protect profit margins.
Investments in Direct Lithium Extraction (DLE) technology will play a crucial role in achieving production targets. Mr. Pécresse clarified that the company is not considering new acquisitions at this stage, nor does it aim to dethrone Albemarle from the top of global production, but rather to ensure sufficient capacity to satisfy its customers. At the same time, always according to Reuters, he declined to comment on rumors of a possible merger with Glencore, citing regulatory restrictions that expire in August.
