Rio Tinto unveils lithium resources and strategic growth plan

Rio Tinto has revealed its initial mineral resources and ore reserves for seven newly acquired lithium assets from Arcadium Lithium. These include four brine deposits in Argentina (Fenix, Olaroz, Sal de Vida, Cauchari) and three hard rock spodumene deposits (Whabouchi, Galaxy, Mt Cattlin). This initial reporting details a total of 11.7 Mt LCE for Fenix and 19.7 Mt LCE for Olaroz, alongside resources for Sal de Vida, Cauchari, Whabouchi, Galaxy, and Mt Cattlin. The Mt Cattlin operation, a Western Australia spodumene deposit, was placed on care and maintenance on July 1, 2025, due to market conditions.

The company also outlined its "stronger, sharper and simpler" strategy at its 2025 Capital Markets Day, focusing on operational excellence, project execution, and capital discipline. Key targets include 7% copper equivalent production growth in 2025 and 3% CAGR to 2030, supported by projects like Oyu Tolgoi, Simandou, and Rincon. Rio Tinto aims for $650m in annualised productivity benefits and an opportunistic release of $5-10bn from its existing asset base.

Financial guidance includes capex below $10bn per year from 2028 and a shareholder returns policy of 40-60% dividend payout. The company projects a 40-50% EBITDA increase by 2030, driven by production growth and efficiency gains across its diversified portfolio. Lithium production is expected to reach ~200ktpa LCE capacity by 2028, with 2026 guidance for lithium at 61-64kt LCE (Rio Tinto share).