The diversified, globally active mining company Rio Tinto $RIO (-1.52%) has taken the next significant step in the battery metals sector by committing USD 900 million for a 49.99% stake in Chile's Salar de Maricunga, a world-class lithium project controlled by Chilean state-owned mining company Codelco.
"We are honored to have been selected as Codelco's partner to execute a world-class project with direct lithium extraction technology in the Salar de Maricunga," said Jakob Stausholm, CEO of Rio Tinto, on Monday.
"Codelco is a strategic partner for Rio Tinto in Chile... We aim to bring significant investment and long-term benefits to the Atacama region by jointly advancing Maricunga and Nuevo Cobre."
The Salar de Maricunga in Chile's Atacama region is one of the highest-grade undeveloped lithium brine resources in the world and offers the potential for scalable, long-life, low-cost production. The joint venture plans to use direct lithium extraction technology to increase efficiency and reduce environmental impact, particularly with regard to water consumption, which is a critical issue in an arid region such as northern Chile.
Under the terms of the agreement, Rio Tinto will make an initial investment of USD 350 million to support feasibility studies and resource assessments required for a final investment decision. If the project is built, a further $500 million will be invested and a bonus payment of $50 million will be made if lithium production commences by the end of 2030.