Valuing Rio Tinto Stock In 2025

Core Insights - Rio Tinto is diversifying into critical minerals like lithium and bauxite to support the energy transition [1][3] - The company operates as a vertically integrated mining entity, enhancing cost management and quality assurance [1] - Iron Ore remains the primary revenue source, with strong demand from steel production in markets such as China, India, and Southeast Asia [2] Lithium and Copper Investments - Rio Tinto plans to invest up to $900 million for a 49.99% stake in the Maricunga lithium project, utilizing direct lithium extraction technology [4] - The company completed a $6.7 billion acquisition of Arcadium Lithium in March 2025, bolstering its position in the lithium market [4] - A 50% increase in copper production is anticipated from the Oyu Tolgoi mine in 2025, targeting 110,000–150,000 tonnes [5] Market Trends and Valuation - The global shift towards decarbonization is driving demand for lithium and copper, essential for electric vehicles and renewable energy infrastructure [3] - Rio Tinto's stock is currently valued at $80 per share, indicating a nearly 29% upside potential from its current price of $62 [7] - The stock is trading at 8 times its trailing earnings, below the company's average P/E ratio of 10 over the past five years [7]