Rio Tinto’s Lithium Push: A New Chapter in Mining

Rio Tinto is turning its focus to lithium, the fastest growing part of its business. The company has been working hard to bring new lithium projects online after prices fell sharply because of too many supplies from China. The drop in prices caused many workers to lose their jobs, but the market is slowly recovering. The company plans to mine at least 61, 000 metric tons of lithium this year and aims for a capacity of 200, 000 metric tons by 2028 if demand rises. The goal is to build projects quickly and within budget, a priority that occupies most of the leader’s time. Rio wants to use low‑cost assets and supply customers who need long‑term agreements with price limits.Rio’s growth will largely come from direct lithium extraction (DLE), a method that was the main reason for buying Arcadium. One DLE project is expected to start in a few years, and the company has no plans to buy more lithium projects right now. The focus is on having a strong portfolio of assets that matters to customers, rather than trying to be the top or third in the market. The company’s chief of aluminum and lithium is a former General Electric executive who joined Rio in 2023. He drives a hybrid car and sees lithium as a key building block for the future, moving from a niche material to one that many industries rely on. Rio’s strategy is simple: bring projects online on time, keep costs low, and supply customers with reliable lithium. The company believes this will give it a strong position in the growing market.