Argentina Approves Rio Tinto’s $2.5 Billion Lithium Mining Project

Quick overview

The Government of Argentina has approved the first lithium mining project under its new Large Investment Incentive Regime (RIGI), granting the green light to Anglo-Australian mining giant Rio Tinto for its $2.5 billion Rincón Project.

The announcement was made Tuesday by Daniel González, Argentina’s Secretary of Energy and Mining Coordination, during the ArMinera conference currently taking place in Buenos Aires.
“Today, the RIGI approval committee authorized its first mining project: Rio Tinto’s Rincón Project,” González stated.

The Rio Tinto Project

In late 2024, Rio Tinto announced plans to expand the Rincón project to include a commercial plant capable of producing 60,000 tons of lithium carbonate per year. At the time, the company described the initiative as a sign of its commitment to building a “world-class battery materials portfolio.”

As part of this effort, Rio Tinto CEO Jakob Stausholm met with President Javier Milei in March, underscoring the company’s dedication to investing in Argentina.

The company said in a statement that it expects initial production to begin in 2028, followed by a three-year ramp-up period to reach full capacity. The project is anticipated to generate significant employment and economic opportunities for local businesses.

Stausholm noted that the long-term outlook for lithium remains “attractive,” and emphasized that “the global energy transition supports our investment in Rincón.”

Roberto Cacciola, president of the Argentine Chamber of Mining Companies (CAEM), responded to the news at ArMinera, saying:

“There was a great deal of uncertainty surrounding the application of the RIGI in mining. This was an important announcement that needed to be made.”

Other Projects in the Pipeline

Several other companies have also applied to join the RIGI, including China’s Ganfeng Lithium, Canada’s McEwen Copper, and South Korea’s Posco. However, three projects were found to have irregularities, and officials believe they are unlikely to be approved or resubmitted successfully.

Of the projects submitted so far, five are focused on lithium, one on gold, and one on copper. Despite the regulation requiring a decision within 45 business days, none had been approved until this Tuesday — nearly seven months after the first applications were submitted.

ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.

Related Articles