UK-Australian company drops $900 million to stake claim in Chile’s premier lithium reserve

Financial Times describes in a latest article that British-Australian multinational company Rio Tinto is making a bold move in the lithium sector, investing up to $900 million for a near 50 per cent stake in Chile's Maricunga lithium project.

This deal marks the largest foreign investment in Chile's lithium industry since its semi-nationalisation, positioning Rio Tinto to capitalise on one of the world’s highest-grade lithium reserves—despite a recent downturn in lithium prices.

Unlike other mining giants like BHP and Anglo American, Rio Tinto is focusing heavily on lithium, despite a recent price slump caused by an oversupply of the critical mineral used in lithium-ion batteries.

The Maricunga salt flat, which holds Chile’s second-largest lithium reserve, is home to some of the world’s highest-grade lithium brines. Developed in partnership with the state-owned copper company Codelco, the project will be Chile’s first major lithium venture outside the Atacama salt flat since the 1980s.

Daniel Jimenez, founding partner of lithium consultancy iLiMarkets, commented, “This will be Chile’s first project outside of the Atacama after years of delay in the sector due to political indecision. Rio Tinto is the best choice of partner [for Codelco] for both the capital and knowhow they bring.”

The partnership positions Rio Tinto to strengthen its foothold in low-cost lithium assets. "Developing this significant lithium resource will deliver further value-adding growth in our portfolio of critical minerals essential for the energy transition," said Rio Tinto CEO Jakob Stausholm.

Under the agreement, Rio Tinto will invest up to $900 million over multiple stages as the project reaches key milestones, acquiring a 49.99 per cent stake in the venture, which is majority-owned by Codelco. The company’s recent lithium investments include the $6.7 billion acquisition of US lithium producer Arcadium and a $2.5 billion expansion of its Rincon lithium project in Argentina.

In 2023, Chile’s government announced new projects in strategic lithium reserves must be majority-owned by public companies, further increasing state control over the nation's lithium resources.

By Naila Huseynova