Rio ships first Rincon lithium from Argentina

Rio Tinto (ASX, LSE: RIO) has made its first commercial shipment of lithium carbonate produced at its Rincon project in Argentina, Reuters reported on Tuesday.

Located within the heart of the lithium triangle in the northwestern Salta province, Rincon represents a large-scale, low-cost lithium brine asset targeting an annual production capacity of 60,000 tonnes in battery-grade carbonates.

Production would initially begin from a 3,000-tonne starter plant, followed by a 57,000-tonne expanded plant that is scheduled to come online in 2028 and reach full capacity within three years. Construction of the expanded plant, which is estimated to cost $2.5 billion, is under way.

On Tuesday, the Australian miner officially began exports from the site, with a shipment of 200 tonnes produced at the existing plant leaving the Port of Buenos Aires bound for Shanghai, according to Reuters.

The report comes during a meeting of business leaders and officials in New York organized by Argentina President Javier Milei’s government to attract investment. 

Flagship lithium asset

Rio Tinto acquired the project in March 2022 as part of the group’s strategy to expand its battery materials business under former CEO Jakob Stausholm. Under current leadership, Rincon has become its flagship lithium asset after the company shelved its other major project — Jadar in Serbia — in November.

As its first commercial-scale lithium operation, the Rincon project is expected to deliver approximately 53,000 tonnes of lithium carbonates annually over a 40-year life.

To expedite Rincon’s development, Rio has already applied for the Argentine government’s RIGI incentive scheme, which provides tax and legal benefits.

Before acquiring Rincon, the company held several lithium brine assets in the Latin American nation, namely the Fénix project in Catamarca and the Olaroz project in Jujuy, considered one of the world’s largest.