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Released December 27, 2021 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Some of the hottest properties these days are lithium mines. The world is scrambling for the metal, sometimes called "white gold," which is a key component in lithium-ion batteries, and thus one of the lynchpins in the global race for cleaner energy. Last week, mining giant Rio Tinto (NYSE:RIO) (London, England) said it has entered into a binding agreement to acquire a lithium project in Argentina for $825 million.
Rincon is a large undeveloped lithium brine project located in the Salta Province of Argentina with the capability of producing battery-grade lithium carbonate, Rio Tinto said in a press release, and its potential low carbon footprint can help deliver on the company's drive to decarbonize its portfolio. For related information, see October 21, 2021, article - Rio Tinto Announces $7.5 Billion Investment for 50% Decarbonization by 2030.
"It is expected to be a long-life, low-cost asset that will continue to build the strength of our Battery Materials portfolio, with our combined lithium assets spanning the U.S., Europe and South America," said Chief Executive Officer Jakob Stausholm .
Lithium demand is forecast to grow 25% to 35% per year over the next decade, leading to a large supply gap, according to the company.
Rio Tinto said the direct lithium extraction technology proposed for the project has the potential to increase recoveries compared with solar evaporation brine ponds.
Rio Tinto is acquiring the project from Rincon Mining, a company owned by funds managed by private equity group Sentient Equity Partners (West Bay, Cayman Islands).
The Rincon mining site already has a pilot plant in operation. Phase 1 of the project, which is planned to start construction next year, would expand lithium carbon production capacity to 25,000 tons per year. Phase 2 of the project would double the capacity to 50,000 tons per year. Subscribers to Industrial Info's Global Market Intelligence (GMI) Mining & Minerals Project Database can click here for a list of detailed project reports.
In all, Industrial Info is tracking more than $38 billion worth of lithium mining projects in various stages of development across the globe. Subscribers can click here for the list.
Rio Tinto certainly isn't the only miner grabbing up lithium assets. China's Ganfeng Lithium Company Limited (Xinyu, Jiangxi Province) has been on a massive acquisition spree this year, with the goal of doubling its production by 2025. The company currently accounts of 24% of global output of lithium hydroxide, according to SupChina.
Among other actions, Ganfeng took full ownership of Litio Minera Argentina, which owns a salt lake project in Argentina (click here for the project report); agreed to increase its ownership of Bacanora Lithium's (London, England) mine project in Sonora, Mexico, to 100% (see project reports) and tried unsuccessfully to acquire Millennial Lithium Corporation (Vancouver, British Columbia) for $353 million. In November, Lithium Americas Corporation (NYSE:LAC) (Vancouver) said it entered into a definitive agreement to acquire Millennium in a deal valued at $400 million. Millennial Lithium is developing the Pastos Grandes Brine Extraction and Lithium Plant project in Argentina, which aims to produce 21,000 tons per year of lithium carbonate by its seventh year of operation. Subscribers can click here for the project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
Rincon is a large undeveloped lithium brine project located in the Salta Province of Argentina with the capability of producing battery-grade lithium carbonate, Rio Tinto said in a press release, and its potential low carbon footprint can help deliver on the company's drive to decarbonize its portfolio. For related information, see October 21, 2021, article - Rio Tinto Announces $7.5 Billion Investment for 50% Decarbonization by 2030.
"It is expected to be a long-life, low-cost asset that will continue to build the strength of our Battery Materials portfolio, with our combined lithium assets spanning the U.S., Europe and South America," said Chief Executive Officer Jakob Stausholm .
Lithium demand is forecast to grow 25% to 35% per year over the next decade, leading to a large supply gap, according to the company.
Rio Tinto said the direct lithium extraction technology proposed for the project has the potential to increase recoveries compared with solar evaporation brine ponds.
Rio Tinto is acquiring the project from Rincon Mining, a company owned by funds managed by private equity group Sentient Equity Partners (West Bay, Cayman Islands).
The Rincon mining site already has a pilot plant in operation. Phase 1 of the project, which is planned to start construction next year, would expand lithium carbon production capacity to 25,000 tons per year. Phase 2 of the project would double the capacity to 50,000 tons per year. Subscribers to Industrial Info's Global Market Intelligence (GMI) Mining & Minerals Project Database can click here for a list of detailed project reports.
In all, Industrial Info is tracking more than $38 billion worth of lithium mining projects in various stages of development across the globe. Subscribers can click here for the list.
Rio Tinto certainly isn't the only miner grabbing up lithium assets. China's Ganfeng Lithium Company Limited (Xinyu, Jiangxi Province) has been on a massive acquisition spree this year, with the goal of doubling its production by 2025. The company currently accounts of 24% of global output of lithium hydroxide, according to SupChina.
Among other actions, Ganfeng took full ownership of Litio Minera Argentina, which owns a salt lake project in Argentina (click here for the project report); agreed to increase its ownership of Bacanora Lithium's (London, England) mine project in Sonora, Mexico, to 100% (see project reports) and tried unsuccessfully to acquire Millennial Lithium Corporation (Vancouver, British Columbia) for $353 million. In November, Lithium Americas Corporation (NYSE:LAC) (Vancouver) said it entered into a definitive agreement to acquire Millennium in a deal valued at $400 million. Millennial Lithium is developing the Pastos Grandes Brine Extraction and Lithium Plant project in Argentina, which aims to produce 21,000 tons per year of lithium carbonate by its seventh year of operation. Subscribers can click here for the project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
