Rio Tinto Hits the Brakes on Lithium in Strategy Shakeup

Core Viewpoint - Rio Tinto is undergoing a strategic overhaul to streamline operations and enhance project returns under the leadership of new CEO Simon Trott [1][2] Group 1: Strategic Changes - The reorganization may involve asset sales, a slowdown in lithium project developments, and further cost reductions [2] - Trott has introduced a new operating model, simplifying Rio Tinto's structure into three main business segments: Iron Ore, Aluminium & Lithium, and Copper [3] - The Lithium business has been integrated into the Aluminium product group, led by Jérôme Pécresse [3] Group 2: Focus on Lithium - While Rio Tinto will continue to invest in lithium, projects will need to compete with iron ore and copper developments for resources [3] - Trott emphasized the importance of being selective in the lithium sector to focus on the most profitable projects, given the high bar for options available [5] - Strong lithium demand is supported by a 27% year-over-year increase in global electric vehicle sales in the first seven months of the year [6] Group 3: Project Developments - Despite the strong demand for lithium, Rio Tinto decided to halt a $2.4 billion lithium project in Serbia due to permitting challenges [6]