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Highlights
- Rio Tinto enters major lithium JV in Chile with Codelco
- Deal includes up to US$900 million in funding for Maricunga project
- Focus on direct lithium extraction and sustainable practices
In a significant development for the global lithium industry and the Australian resources sector, Rio Tinto Ltd (ASX:RIO) has announced a US$900 million strategic partnership with Chile’s state-owned mining company, Codelco, to jointly develop the high-grade Salar de Maricunga lithium project. This move reinforces Rio Tinto’s commitment to growing its footprint in critical minerals, aligning closely with rising demand for battery metals in the electric vehicle (EV) transition.
Under the newly signed agreement, Rio Tinto will acquire a 49.99% interest in Salar de Maricunga SpA, the Codelco-owned entity that holds extensive lithium concessions in the region. The funding will be delivered in phases, starting with US$350 million to support advanced technical studies and resource definition. A further US$500 million is expected to be directed toward project construction, pending a final investment decision, likely by the end of this decade.
An additional US$50 million will be payable if the project achieves its target of first lithium production by 2030.
The Salar de Maricunga, situated in Chile’s Atacama region, is considered one of the highest-grade undeveloped lithium brine deposits globally. It follows closely behind the renowned Salar de Atacama, where other major producers such as Sociedad Química y Minera de Chile (NYSE:SQM) and Albemarle Corporation (NYSE:ALB) operate.
Notably, the project will utilize direct lithium extraction (DLE) technology—a method that offers faster processing, higher recovery rates, and significantly reduced water usage compared to traditional evaporation ponds. This aligns with both companies’ goals of advancing environmentally responsible resource development.
The partnership also supports Chile’s national strategy to increase state involvement in the lithium sector, with Codelco and ENAMI leading efforts to foster strategic, public-private ventures.
For Rio Tinto, this is a continuation of its critical minerals push, following its acquisition of the Rincon Lithium Project in Argentina and exploration efforts in Serbia and the United States. It strengthens the company’s position in South America's lithium triangle—home to over half the world’s lithium resources.
This development is especially noteworthy for investors tracking the performance of resource-focused stocks within the broader S&P/ASX200 index. Additionally, Rio Tinto continues to be of interest among income-focused portfolios, given its track record as one of the leading ASX dividend stocks.
The transaction is anticipated to close by Q1 2026, subject to regulatory approvals and customary closing conditions.
