Argentina has taken a major step towards strengthening its position in the global lithium market.

 

This, with President Javier Milei joining Rio Tinto Chief Executive Simon Trott and Catamarca Governor Raúl Jalil to inaugurate two major lithium projects backed by a combined investment of approximately $1.4 billion.

 

The official opening of the Fénix 1B expansion and Sal de Vida operation in Catamarca marks a significant boost for Argentina’s mining ambitions, as demand for lithium continues to grow amid the global transition to cleaner energy and electric mobility.

 

Both projects achieved first production in the second quarter, ahead of schedule, and are now ramping up operations. Once fully operational, they will deliver an additional 25,000 tonnes of annual lithium carbonate equivalent (LCE) capacity, strengthening Rio Tinto’s global lithium business and Argentina’s role as a key supplier to international markets.

 

The inauguration celebrations included a visit to the Fénix facility by Milei and Jalil, hosted by Trott, followed by an event attended by national and provincial authorities, employees, suppliers and representatives of local and Indigenous communities.

 

President Milei described the Fénix expansion as a landmark achievement for Argentina’s mining sector, crediting the government’s investment policies for helping attract major international capital.

 

“The expansion of the Fénix project is a historic milestone that demonstrates the potential of Argentina’s mining sector. This was made possible by the country once again creating incentives for the production of resources that are essential to the modern world.

 

“We are proud that a company of this scale once again sees Argentina as a reliable partner and is investing in our country, validating the decisions we have taken over the past few years.”

 

For Rio Tinto, the two projects represent a significant addition to its growing lithium portfolio and reinforce its ambition to become one of the world's leading lithium producers.

 

Chief Executive Simon Trott said the projects build on decades of operational experience in Catamarca and reflect the contribution of Argentina’s workforce, suppliers and local communities.

 

“Today is a proud moment for Rio Tinto and an important milestone for Argentina’s lithium industry, as we grow our position as a leading global supplier. It was a privilege to welcome President Milei, Governor Jalil and national and provincial authorities, and I thank them for joining us to recognise the work behind Fénix 1B and Sal de Vida.

 

“These two projects build on nearly three decades of lithium production in Catamarca and the expertise of our Argentine workforce. They demonstrate our industry-leading project delivery capability, as we execute with discipline towards our global target of 200,000 tonnes lithium carbonate equivalent annual production capacity by 2028.

 

“The delivery of these projects reflects the dedication of our people, the capabilities of Argentine suppliers and our partnerships with local communities and governments. Our focus now is on safely ramping up production, delivering reliable, high-quality lithium to our customers, and creating lasting value for our shareholders and Argentina.”

 

The Fénix operation, which began production in 1997 as Argentina’s first commercial lithium project, is receiving a major boost through the Fénix 1B expansion.

 

The expansion adds 10,000 tonnes of annual LCE capacity, taking the operation’s targeted total annual capacity to approximately 40,000 tonnes.

 

Meanwhile, Sal de Vida, a new lithium carbonate operation located around 20 kilometres northeast of Fénix, is targeting annual production capacity of 15,000 tonnes of LCE.

 

Together, the projects add 25,000 tonnes of annual capacity to Rio Tinto’s lithium production base, providing fresh momentum to the company's expansion plans.

 

The latest investments are part of Rio Tinto’s broader push to expand its lithium business across Argentina, with operations and projects spanning the provinces of Catamarca, Jujuy and Salta. The portfolio also includes the Rincon lithium project.

 

Beyond production growth, the investments are expected to deliver a significant boost to Argentina’s domestic supply chain.

 

Rio Tinto expects around 70% of the approximately $4 billion in growth capital earmarked for its lithium operations in Argentina to be spent with local suppliers, creating opportunities for domestic businesses and strengthening the country's mining ecosystem.

 

With Fénix 1B and Sal de Vida now moving into production ramp-up, Argentina is seeking to turn its vast lithium resources into a major engine of investment, industrial growth and export earnings.