Argentina Approves Rio Tinto’s $2.5 Billion Rincon Lithium Expansion Under New Mining Incentive Plan

Argentina Greenlights Major Lithium Investment in Salta Province

Argentina has approved Rio Tinto’s $2.5 billion expansion of the Rincon Lithium Project, marking a breakthrough for the country’s mining industry. This move represents the first approval under the new Incentive Regime for Large Investments (RIGI), aimed at attracting foreign capital.

The announcement, made by Daniel Gonzalez, Secretary for Mining and Energy Coordination, signifies a strong push by President Javier Milei’s administration to position Argentina as a global lithium leader. Argentina, together with Chile and Bolivia, forms the world-renowned “lithium triangle” and plays a pivotal role in supplying lithium for electric vehicles and high-tech electronics.

Rincon Expansion to Boost Lithium Output and Local Economy

The Rincon project, located in the high-altitude Salta Province, will dramatically increase lithium carbonate output. The expansion includes building a 57,000-tonne per year plant, boosting production capacity to 60,000 tonnes annually. This facility will complement the existing 3,000-tonne starter plant, which began production in November 2024—just 32 months after Rio Tinto acquired the greenfield site.

This project utilizes direct lithium extraction (DLE) from brine, which conserves water and minimizes waste. This method allows for more sustainable and consistent lithium carbonate output, aligning with global ESG standards. Rio Tinto’s expansion plan extends the mine’s life to 40 years and supports regional development by creating jobs and driving business growth.

Mining Sector Eyes Further Approvals Amid RIGI Delays

Despite the Rincon approval, the Argentine mining industry remains concerned about delays in other project reviews. Seven additional mining applications await decisions under the RIGI framework. Roberto Cacciola of the Argentine Chamber of Mining Enterprises (CAEM) acknowledged these industry anxieties during recent statements.

Nevertheless, the RIGI program has sparked strong interest from global players, including McEwen Copper (Canada) and Posco (South Korea). These investments signal confidence in Argentina’s mineral wealth and its strategic importance in the green energy transition.

At SuperMetalPrice, we continue to track key developments in the global lithium market. The Rincon expansion strengthens Argentina’s role in meeting soaring lithium demand and stabilizing its inflation-hit economy through foreign investment.