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Rio Tinto seeks lithium projects worldwide
Rio Tinto Group is seeking proposals to buy lithium companies and projects as the mining giant looks to get into the business around the important battery metal. This makes Rio Tinto the first of the world's largest diversified mining groups to enter the mining of lithium. The company thus also wants to be represented in the future in the interesting future market for the production of batteries for electric vehicles. As the transition to cleaner energy sources and the reduction of dependence on fossil fuels is driven worldwide, demand will increase ever more strongly and the corresponding margins in this segment will be high for years.
Rio Tinto Group originally wanted to develop a huge underground lithium mine in Serbia to production maturity so it could supply automotive production in Germany. But earlier this year, the Serbian government blocked the development because thousands of demonstrators took to the streets to protest the project. As a result, Rio is buying a lithium mine in Argentina for $825 million and plans call for it to be operational in 2024. But the industrial appetite for lithium is significantly higher than the supply, so Rio Tinto wants to invest billions more in the sector. This should drive the takeover fantasy among some explorers, provided the projects are big enough for Rio Tinto.
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