RIO Selected as Preferred Partner by ENAMI for Chilean Lithium Project

Core Viewpoint - Rio Tinto Group has been selected as the preferred partner for the Salares Altoandinos lithium project in Chile, indicating a strategic move to enhance its lithium portfolio amid a projected increase in demand for lithium in the clean-energy transition [1][2]. Group 1: Project Developments - Rio Tinto will acquire an initial 51% stake in the Salares Altoandinos project, with ENAMI holding the remaining 49%, pending regulatory approvals and other customary conditions [1]. - The Rincon lithium project in Argentina, acquired in 2022, is expected to produce 60,000 tons of battery-grade lithium carbonate annually, with first production anticipated in 2028 [3]. - Production at the Sal de Vida project in Argentina is expected to commence in 2027, while the Nemaska Lithium project in Quebec, where Rio Tinto holds a 50% stake, is projected to start production in 2028 [4]. Group 2: Market Context - Lithium prices have decreased by 40% over the past year due to market oversupply, but demand is expected to rise significantly as lithium becomes crucial for low-carbon energy solutions [2]. - Rio Tinto's strategic acquisitions and partnerships, including a joint venture with Codelco for a lithium project in Salar de Maricunga, position the company as a major player in the lithium market [5]. Group 3: Financial Performance - Over the past year, Rio Tinto's stock has declined by 14.9%, compared to a 12.7% decline in the industry [6].