The mining group Rio Tinto
$RIO (+2.58%)
$RIO (-0.91%) is providing more than eleven billion US dollars for the development of its lithium business, according to Barrenjoey analyst Glyn Lawcock.
This also includes money for the joint venture with the Chilean company Enami.
He expects the mining group alone to put up more than five billion dollars for the full development of a pipeline of lithium projects, Lawcock writes.
Rio Tinto said it will contribute about $425 million in cash, its direct lithium extraction technology and other non-monetary contributions to bring the project with Enami to a final investment decision.
Barrenjoey rates Rio Tinto as "Overweight" and sets a price target of 126.00 Australian dollars. The share is trading 1.0 percent lower at 115.82 Australian dollars.
