Rio Tinto adopts space tech for lithium exploration in Argentina
“Rio Tinto and Fleet Space share a commitment to pioneering breakthrough technologies to make net-zero a reality,” Flavia Tata Nardini, co-founder and chief executive of Fleet Space Technologies said.
The company earmarked $350 million to spend at Rincon this year, with first lithium from the starter plant expected by the end of 2024. The small battery-grade lithium carbonate (LCE) facility will have a capacity of 3,000 tonnes per year.
The Rincon project, located in the “lithium triangle”’, an area covering parts of Chile, Argentina and Bolivia, is a large, undeveloped lithium-brine project that Rio Tinto describes as a valuable source of “rapidly produced, high-quality lithium” to support the global energy transition.
The asset has reserves of almost two million tonnes of contained LCE, sufficient for a 40-year mine life.
Chief executive Jakob Stausholm has said the mine, which would produce battery-grade LCE, strengthens Rio Tinto’s battery materials business and positions the company to meet the expected double-digit growth in lithium demand over the next decade.
Over the past six years, Rio has been expanding its footprint in the battery market. In 2018, it reportedly attempted to buy a $5bn stake in Chile’s SQM, the world’s second largest lithium producer.
In April 2021, it kicked off lithium production from waste rock at a demonstration plant located at a borates mine it controls in California.
Rio is also trying to revive one of its biggest lithium projects, the proposed $2.4 billion Jadar mine in Serbia. Rio had its mining licence revoked in 2022, following widespread protests against the proposed mine on environmental concerns.
The mining giant won a small, but key battle in July, as Serbia reinstated Rio Tinto’s licence to develop it, but the country’s parliament is debating a proposal to ban lithium and borate mining and exploration. If passed into a law, this would effectively put an end to the contested Jadar project.
No. 3 lithium miner
Rio’s most recent move into the market came in early October, with the $6.7 billion acquisition of US-based Arcadium Lithium (ASX: LTM)(NYSE: ALTM). Once closed, the deal will position Rio Tinto as one of the world’s largest lithium miners, behind only US-based Albemarle (NYSE: ALB) and Chile’s SQM (NYSE: SQM).
Analysts have noted that Arcadium’s specialized knowledge in direct lithium extraction (DLE) is Rio’s main prize gained with the friendly takeover, positioning it as a strong competitor alongside Eramet, Sunresin, Exxon Mobil, and others working to establish this technology as an industry standard in the years ahead.
Fleet Space has supplied its its end-to-end mineral exploration solution, ExoSphere, to several companies in recent months. These include Barrick Gold (NYSE: GOLD) (TSX: ABX), Kincora Copper (ASX:KCC), Inflection Resources (CSE:AUCU) and Astute Metals (ASX:ASE).
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