Lithium Investment Boost by Rio Tinto: An Enthralling Venture in the Lithium Sector
Rio Tinto, a leading global mining company, has signed a binding agreement with Chile's Empresa Nacional de Minería (ENAMI) to jointly develop the lithium deposit Salares Altoandinos in the Atacama region. The project is expected to close in the first half of 2026, subject to approval from relevant authorities.
The joint venture aims to take over the exploration and later development of the project. Rio Tinto will acquire 51% of the project's shares and invest up to $425 million. The project will be located in the Atacama region, known for its rich lithium reserves.
The Salares Altoandinos project is a significant opportunity for Rio Tinto to develop a large, long-life, and low-cost lithium brine resource. The company is eager to take a leading role in the lithium sector and is now investing in South America.
The project will enter a pre-feasibility study phase lasting 12-18 months after the transaction closes. Development activities are expected to start in late 2026 or early 2027. Preliminary production could begin around 2029-2030, expanding to full-scale production by 2032-2035. Some sources suggest ramped-up production with a target to reach approximately 75,000 metric tons of lithium annually by 2035, with some production possibly starting around 2032 at a smaller scale.
Rio Tinto's Direct Lithium Extraction (DLE) technology will be leveraged for this project, aiming for a large-scale, low-cost lithium operation to support the global energy transition, particularly in electric vehicle markets.
For those looking to broadly invest in the lithium boom, they may want to consider the Best of Lithium Index. Developed by Börsenmedien AG, the index may serve as an option for broad investment in the lithium sector. It's important to note that the Best of Lithium Index is a separate investment opportunity from the Rio Tinto stock.
Investors who are already invested in Rio Tinto are advised to maintain their stop-loss at 45.00 euros. The stock of Rio Tinto has shown some improvement recently. However, given the specific nature of this lithium project, it's crucial for investors to make informed decisions based on their individual investment strategies.
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The agreement is based on an earlier decision from May, in which Rio Tinto was officially named the preferred partner for the project. Börsenmedien AG, which developed the Best of Lithium Index and holds the rights to it, has entered into a cooperation agreement with the issuer of the Best of Lithium Index, granting the issuer a license to use the index. Börsenmedien AG receives remuneration from the issuer in the context of this cooperation agreement.
- Rio Tinto, in partnership with ENAMI, is planning to invest up to $425 million in the lithium sector, specifically in the Salares Altoandinos project, located in the Atacama region known for its rich reserves.
- The energy sector, particularly electric vehicle markets, may benefit from Rio Tinto's new Direct Lithium Extraction (DLE) technology implemented in this project, aiming for a low-cost lithium operation that supports global energy transition.
- For those looking to invest in the broader lithium sector, they may find the Best of Lithium Index, developed by Börsenmedien AG, an attractive investment opportunity, separate from the Rio Tinto stock.
