Rio Tinto PLC (LSE:RIO) said it completed the acquisition of the Rincon lithium project in Argentina after receiving approval from Australia’s Foreign Investment Review Board.
The deal was completed for a total cost of US$825mln.
Dual-listed Rio Tinto announced a binding agreement to purchase the project from Rincon Mining, which is owned by private equity group Sentient Equity Partners, back in December.
“Rincon is a large undeveloped lithium brine project located in the heart of the lithium triangle in the Salta Province of Argentina, an emerging hub for greenfield projects,” Rio said in a statement.
The statement added that the Rincon project is a “long life, scalable resource capable of producing battery grade lithium carbonate”, as well as having the potential to have one of the lowest carbon footprints in the industry.
Extraction technology for the project could potentially significantly increase lithium recoveries compared to solar evaporation ponds, and a pilot plant is currently at the site, with further work planned to focus on optimising the process and recoveries.
Rio Tinto also said that the fundamental for battery grade lithium carbonate is strong, with demand expected to grow 25%-35% per annum over the next decade.
"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,” said chief executive Jakob Stausholm.