Rio Tinto expects lithium to become its fastest-growing division as it expands production to meet rising demand from electric vehicles and battery storage.
Rio Tinto expects its lithium business to grow faster than its copper, iron ore and other divisions as the miner ramps up production to serve the expanding electric vehicle and battery storage markets.
According to Reuters, the company aims to produce at least 61,000 metric tonnes of lithium this year and expand capacity to 200,000 metric tonnes by 2028, depending on market demand.
Rio strengthened its lithium push last year through its acquisition of Arcadium, gaining access to mines, processing facilities and deposits across multiple regions, along with customers including Tesla.
Despite recent pressure from a lithium price crash driven partly by Chinese oversupply, Rio remains focused on building low-cost operations in Argentina and Canada.
“We want to show that we can build on time and on budget,” said Jérôme Pécresse, head of Rio’s aluminium and lithium business.
Pécresse said the company is also investing in direct lithium extraction technology, with one project expected to launch within the next few years.
“We have a clear roadmap to get to 200,000 metric tons per year by 2028,” he said.
Rio said its strategy is focused on building competitive assets rather than becoming the world’s largest lithium producer.
