By Robb M. Stewart
Rio Tinto lined up nearly $1.2 billion to finance the development of a lithium project in Argentina, supporting its growth pipeline for the key ingredient in battery storage and electric vehicles.
The mining company said it secured the financing package from four international lenders that will help support work on the $2.5 billion Rincon project in Argentina's Salta Province, which is targeting about 60,000 tons a year of battery-grade lithium carbonate capacity.
The financing is made up of loans from International Finance Corp., IDB Invest, Export Finance Australia and Japan Bank for International Cooperation.
Construction of the plant started last year, including camp expansion works and development of site infrastructure. Rio Tinto is targeting its first production in 2028, with a three-year ramp-up to full capacity. Rincon is expected to have a 40-year mine life.
The financing package broadens funding sources for the Rincon project, which is underpinned by an attractive long-term outlook driven by the energy transition, said Jerome Pecresse, chief executive of the company's aluminum and lithium segment.
Rio Tinto, which is one of the biggest mining companies in the world, is developing a lithium business largely acquired through last year's $6.7 billion takeover of Arcadium Lithium, while also expanding a copper mine in Mongolia, and building a new iron-ore operation in Guinea.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
03-10-26 1508ET
