LAS VEGAS — Rio Tinto, the world’s second-largest mining company, anticipates its lithium division will become its fastest-growing business segment, outpacing even its copper and iron ore operations, according to a company executive who spoke Tuesday at an industry conference in Las Vegas.
The mining giant entered the lithium sector last year by acquiring U.S.-based Arcadium, a purchase that gave the company access to mines, processing operations, and mineral deposits spread across four continents. The deal also brought with it an established customer list that includes electric vehicle maker Tesla.
Since completing that acquisition, Rio Tinto has been working to absorb those new assets during a difficult period for the lithium market. A flood of supply from China drove prices sharply lower, triggering widespread layoffs across the industry. Market conditions have only recently begun to stabilize.
Jérôme Pécresse, who leads Rio Tinto’s aluminum and lithium business unit, spoke with Reuters on the sidelines of the Fastmarkets Global Lithium, Battery and Critical Materials Conference. He said the company is moving ahead with plans to open mines in Argentina and Canada — operations it believes will remain financially viable even if lithium prices fall again.
Rio Tinto is targeting production of at least 61,000 metric tons of lithium this year, with a goal of reaching the capacity to produce 200,000 metric tons annually by 2028, if market demand supports that level of output.
