Rio Tinto’s CEO, Jakob Stausholm, expressed optimism about the future of lithium, highlighting its continued growth driven by the increasing adoption of electric vehicles (EVs). However, he cautioned that lithium prices are expected to remain volatile.
Despite the potential in the lithium market, Stausholm stated that Rio Tinto has no plans for significant acquisitions to expand its lithium business. Instead, the company intends to focus on enhancing lithium extraction technology.
While other major mining firms like BHP have stayed away from investing in lithium, Rio Tinto remains committed to the mineral. Stausholm emphasized the importance of additional battery capacity not only for EVs but also for stationary batteries, which will further drive the demand for lithium.
Rio Tinto is actively developing the Rincon project, a lithium-brine mine located in Argentina. The company aims to establish a battery-grade lithium carbonate plant with an annual capacity of 3,000 tonnes at this site, with production slated to commence by the end of 2024.
Despite challenges such as the dispute surrounding the Jadar lithium project in Serbia, where the license was revoked in 2022 due to environmental concerns, Rio Tinto maintains its focus on lithium ventures.
Stausholm also addressed inflation concerns, suggesting that inflation in Western countries is expected to moderate in the coming year, which could help stabilize costs for companies operating in the sector.
