【SMM Analysis】Rio Tinto Partners with Codelco to Develop World-Class Lithium Project in Lithium Triangle with $900M Investment

Global mining giant Rio Tinto has signed an agreement with Chile’s state-owned Codelco to jointly develop a major lithium project in the Salar de Maricunga, marking a strategic expansion in battery metals. Under the deal, Rio Tinto will acquire a 49.99% stake in the project company by investing $900 million, collaborating with Codelco to advance the development of this high-grade lithium brine resource.

Rio Tinto’s initial $350 million investment will fund project studies and resource assessments to support a final investment decision. If approved, an additional $500 million will be allocated for construction. Furthermore, the company will make a $50 million milestone payment if the joint venture delivers first lithium by the end of 2030.

Jakob Stausholm, CEO of Rio Tinto, stated, "We are honored to partner with Codelco to develop this world-class project using direct lithium extraction (DLE) technology. Latin America’s ‘Lithium Triangle’ offers the lowest-cost and highest-potential lithium resources globally." He emphasized that this collaboration builds on the two companies’ successful copper ventures and will bring long-term benefits to the Atacama region.

Located in Chile’s Atacama region, the Salar de Maricunga holds one of the world’s highest-grade lithium brine deposits, with strong potential for scalable, low-cost production. The joint venture plans to deploy DLE technology to maximize recovery rates while minimizing environmental impact—particularly water usage, a critical concern in the arid region.

Máximo Pacheco, Chairman of Codelco, noted, "This partnership with Rio Tinto is a key step in our lithium diversification strategy. Amid the global energy transition, this project will deliver maximum value for Chile."

Despite current lithium price weakness due to oversupply, Rio Tinto continues to aggressively invest in lithium resources, diverging from other major miners focused on copper acquisitions. The company is betting on tightening market conditions and rising demand by the end of the decade.

The transaction is expected to close by Q1 2026, pending regulatory approvals. This deal represents Rio Tinto’s latest strategic move in the Lithium Triangle, following its Rincon salt lake project in Argentina, further strengthening its position in the battery metals supply chain.