Rio Tinto Positions Lithium as Its Fastest-Growing Division, Targeting 200,000-Ton Capacity by 2028
N.R. Finch
Rio Tinto's lithium head says the metal will outpace every other division in growth, with capacity set to triple from 61,000 tonnes this year to 200,000 tonnes by 2028 — contingent on DLE technology scaling up and demand recovering in time.
Where does Rio's lithium come from?
Rio completed its $6.7 billion acquisition of Arcadium Lithium last year, marking its formal entry into the lithium sector.
Mine projects are now advancing in Argentina and Canada.
This means → Rio did not build a lithium business from scratch — it bought a full package of mines plus technology in one deal.
Triple capacity in three years — how realistic is the target?
The plan: produce at least 61,000 tonnes of lithium this year, then reach 200,000 tonnes by 2028.
The caveat: expansion is conditional on "market demand support." In plain terms = if lithium prices stay depressed and buyers hold back, the timeline slips.
Management says a "clear roadmap" is already in place and rules out further lithium acquisitions — existing assets are deemed sufficient.
Why is DLE technology the key variable?
DLE — direct lithium extraction, a method that pulls lithium straight from brine without traditional evaporation ponds, faster and less water-intensive — was a core driver behind the Arcadium deal.
Management expects one DLE project to begin operating within several years.
This means → hitting the 200kt target on schedule is largely a bet on whether this technology can move from pilot stage to commercial-scale production.
Does Rio want to be the world's biggest lithium producer?
Management was explicit: becoming the largest lithium producer is not the goal.
The strategy is to hold "enough scale to ensure market influence with customers."
This reflects a positioning choice — Rio is not chasing volume rankings but aiming for pricing power and leverage in customer negotiations.
What if lithium prices keep falling?
Management says the Argentina and Canada projects remain economically viable even if prices drop further.
In plain terms = these mines sit low enough on the cost curve to survive a downturn.
The ultimate test remains: whether global lithium demand recovers to levels that justify large-scale expansion before 2028.
Content is for reference only, not financial advice.