Rio Tinto expands lithium production in Argentina
Mining giant Rio Tinto has commissioned two additional lithium projects in Argentina. The 'Fénix-1B' expansion and the 'Sal-de-Vida' plant in Catamarca province are now ramping up. At full capacity, they are expected to achieve a combined annual production capacity of 25,000 tons of lithium carbonate equivalent.
Image: Rio Tinto
Rio Tinto has announced the official opening of expansion project ‘Fénix 1B’ and the ‘Sal de Vida’ lithium operation in the province of Catamarca. According to the British-Australian mining giant, it has invested a total of around US$1.4 billion (approx. €1.25 billion euros) in the two projects. Production at both sites reportedly began ahead of schedule in the second quarter of 2026, as stated in an accompanying release. The projects are intended to strengthen “Rio Tinto’s standing and Argentina’s position as a leading supplier of lithium for global markets.”
Background: ‘Fénix’ is considered Argentina’s first commercial lithium operation and began production in 1997. The ‘Fénix 1B’ expansion is said to have increased the annual capacity of the existing facility by 10,000 tonnes of lithium carbonate equivalent (LCE), bringing the total on-site capacity to around 40,000 tonnes. ‘Sal de Vida’, on the other hand, is a completely new lithium carbonate operation located approx. 20 km northeast of ‘Fénix’, with a targeted annual capacity of 15,000 tonnes. Both sites are located in Catamarca, a province in northwest Argentina. Rio Tinto also operates or plans additional lithium projects in the Argentine provinces of Jujuy and Salta, including the flagship lithium project ‘Rincón’, which is expected to have a long-term capacity of 60,000 tonnes per year. Commercial operations there are set to begin in 2028.
Commenting on the launch of the two operations in Catamarca, Simon Trott, CEO of Rio Tinto, said: “Today is a proud moment for Rio Tinto and an important milestone for Argentina’s lithium industry, as we grow our position as a leading global supplier. […] These two projects build on nearly three decades of lithium production in Catamarca and the expertise of our Argentine workforce. They demonstrate our industry-leading project delivery capability, as we execute with discipline towards our global target of 200,000 tonnes lithium carbonate equivalent annual production capacity by 2028.”
Rio Tinto has also long had an interest in developing a lithium project in Europe – namely, in Serbia.However, the company pulled away from the so-called Jadar project at the end of last yearand stated that it would prioritise other ‘short-term opportunities’. The pause on the project in Serbia, which was still in the permitting phase, was one of several measures taken by Simon Trott, who was appointed CEO of Rio Tinto in August 2025, to rationalise operations and reduce costs. One of his first decisions was also to reorganise Rio Tinto into three business units: iron ore, aluminium combined with lithium, and copper.
In general, Rio Tinto has made significant investments recently, including earlier this year in the Canadian company Nemaska Lithium. Rio Tinto also incurred substantial costs in 2024 for the acquisition of lithium producer Arcadiumin a US$6.7 billion deal. This was also because the mining company announced plans to massively invest in its first proprietary lithium mining site in Argentina to expand its battery materials offering.
In recent years, Rio Tinto has pursued the goal of establishing lithium not only as a fourth pillar alongside iron ore, aluminium, and copper mining but also of becoming one of the world’s largest lithium producers. The geographical focus is on Argentina. However, it remains unclear to what extent Rio Tinto will continue to invest so heavily in its lithium business during times of increasing rationalisation.