Fubotv earnings beat by $0.10, revenue topped estimates
SANTIAGO - Mining giants Rio Tinto (NYSE:RIO) and Codelco have entered into a joint venture to develop a lithium project in Chile’s Salar de Maricunga, known for its high-grade lithium brine deposits. The agreement, announced Monday, positions Rio Tinto with a 49.99% stake in the joint venture, marking a significant move into the lithium market, which is crucial for the production of electric vehicle batteries.
The project taps into the Salar de Maricunga’s potential for scalable and cost-effective lithium production. Rio Tinto’s initial investment of $350 million will go towards further studies and resource analysis to advance the project to a final investment decision. An additional $500 million will be invested upon the decision to proceed, with a milestone payment of $50 million if lithium production begins by the end of 2030.
Rio Tinto Chief Executive Jakob Stausholm expressed the company’s commitment to leveraging its expertise for the development of this significant lithium resource, which aligns with the global shift towards renewable energy. Stausholm emphasized the strategic importance of the partnership with Codelco, Chile’s national copper corporation, and the shared goal of responsible and sustainable development in the Atacama region.
Codelco’s Chairman, Máximo Pacheco, highlighted the partnership’s role in advancing Chile’s lithium diversification strategy and welcomed Rio Tinto’s involvement in this key project for the country.
The joint venture will focus on updating the declared reserves and resources, conducting studies for future investment decisions, and engaging with local communities to support infrastructure development. The partnership also aims to apply leading extraction and processing technologies to minimize the environmental impact.
The transaction is expected to close by the end of the first quarter of 2026, pending regulatory approvals and customary closing conditions. This strategic alliance between Rio Tinto and Codelco marks a significant step in meeting the growing demand for lithium and contributing to the energy transition. The information for this article is based on a press release statement.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.