Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO)said on Monday (May 19) that it has signed binding agreements with Corporación Nacional Del Cobre de Chile (Codelco) to develop and operate a high-grade lithium project.
The asset is located in the Salar de Maricunga, a large lithium-containing resource base in Atacama, Chile. Its brine is said to have one of the highest average grades of lithium content in the world.
According to Rio Tinto, it will acquire a 49.99 percent interest in the company Salar de Maricunga, through which Codelco holds its licenses and mining concessions related to the resource base.
Codelco is a state-owned firm formed in 1976. Its full name translates to “National Copper Corporation of Chile.”
“We are honoured to be chosen as Codelco’s partner to deliver a world-class project using Direct Lithium Extraction technology in the Salar de Maricunga, leveraging our expertise as a leading producer of lithium for the global market,” said Rio Tinto Chief Executive Jakob Stausholm. “Developing this significant lithium resource will deliver further value-adding growth in our portfolio of critical minerals essential for the energy transition.”
In 2023, Rio and Codelco entered a joint venture for the exploration of Nuevo Cobre, situated within the Potrerillos mining district, also in Atacama. Codelco owns about 43 percent of Nuevo Cobre, while Rio Tinto owns about 58 percent.
For the Salar de Maricunga partnership, Rio will invest AU$350 million in initial funding for additional studies and resource analysis that will assist in creating a final investment decision.
Once a decision is made, AU$500 million will be dedicated toward construction costs. Another AU$50 million will be allocated should the venture deliver its first lithium target by the end of 2030.
The new partnership with Codelco forms part of Rio Tinto’s long-term lithium plan, which includes a production goal of over 200,000 metric tons of lithium carbonate equivalent annually by 2028.
The company recently completed its acquisition of Arcadium Lithium, making it the world’s third top lithium producer.
Subject to regulatory approvals and the satisfaction of customary conditions, the Salar de Maricunga transaction is expected to close by the end of the first quarter of 2026.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.