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Rio Tinto PLC on Tuesday said it has completed its $825 million acquisition of the Rincon lithium project in Argentina.
The London-based miner working in 35 countries bought the project from Rincon Mining, a company owned by fund managed by private equity group Sentient Equity Partners. The deal was first announced back in December.
Rincon is a large undeveloped lithium brine project located in the 'lithium triangle' of Salta Province in Argentina. Rio Tinto explained that the project is a long life, scaleable resource capable of producing battery-grade lithium carbonate.
‘The market fundamentals for battery grade lithium carbonate are strong, with lithium demand forecast to grow 25% to 35% per annum over the next decade with a significant supply demand deficit expected from the second half of this decade,’ Rio Tinto said.
Chief Executive Jakob Stausholm said ‘Rincon strengthens our battery materials business and positions Rio Tinto to meet the double-digit growth in demand for lithium over the next decade, at a time when supply is constrained.’
The FTSE 100 stock was up 1.0% at 5,923.00 pence on Tuesday morning in London.
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