Rio Tinto opens $1.4 billion lithium expansion in Argentina

Rio Tinto has officially opened two lithium operations in Argentina backed by a combined investment of roughly US$1.4 billion (about €1.25 billion). The company confirmed that production at both sites began ahead of schedule in the second quarter of 2026, according to an accompanying release.

The two projects sit in the province of Catamarca in northwest Argentina. The 'Fénix 1B' expansion adds 10,000 tonnes of annual capacity in lithium carbonate equivalent (LCE, the standard measure for lithium output) to an existing plant, bringing total on-site capacity to around 40,000 tonnes. 'Sal de Vida', located roughly 20 km northeast of Fénix, is a completely new lithium carbonate operation with a targeted annual capacity of 15,000 tonnes.

Rio Tinto said the projects are intended to strengthen "Rio Tinto's standing and Argentina's position as a leading supplier of lithium for global markets."

What is the significance of Fénix?

Fénix is not a new entry in the lithium business. The site is considered Argentina's first commercial lithium operation and began production in 1997. The 1B expansion therefore extends an operation with nearly three decades of running history, rather than starting from zero.

CEO Simon Trott framed the openings in those terms. "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," Trott said. "These two projects build on nearly three decades of lithium production in Catamarca and the expertise of our Argentine workforce."

He added that the deliveries "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."

That 200,000-tonne target is the number against which the Catamarca openings should be measured. The two sites add a combined 25,000 tonnes of capacity, which leaves a substantial gap still to be closed within two years.

Where does the pipeline go next?

Rio Tinto operates or plans additional lithium projects in the Argentine provinces of Jujuy and Salta. The flagship is 'Rincón', with an expected long-term capacity of 60,000 tonnes per year and commercial operations set to begin in 2028.

The Argentina build-out follows a period of heavy acquisition. Rio Tinto paid US$6.7 billion in 2024 for the lithium producer Arcadium and invested earlier this year in the Canadian company Nemaska Lithium. The company has stated a goal of establishing lithium as a fourth pillar alongside iron ore, aluminium and copper, and of becoming one of the world's largest lithium producers.

What about Europe and the cost programme?

The Argentina openings also mark a deliberate geographic choice. Rio Tinto had long pursued the Jadar lithium project in Serbia, which was still in the permitting phase, but pulled away from it at the end of last year. The company said it would prioritise other 'short-term opportunities'.

The Serbia pause was one of several rationalisation and cost-reduction measures taken by Simon Trott, who was appointed CEO in August 2025. One of his first decisions reorganised Rio Tinto into three business units: iron ore, aluminium combined with lithium, and copper.

That combination — heavy lithium investment in Argentina alongside cost discipline elsewhere — defines the open question. It remains unclear to what extent Rio Tinto will keep investing at this scale in its lithium business as rationalisation continues.

For battery supply chains, the immediate items to watch are the ramp-up rates at Sal de Vida and Fénix 1B against the 200,000-tonne 2028 target, and whether Rincón holds to its 2028 commercial start.