(The Net Zero Circle - May 22) In a landmark development for Latin America’s energy transition, Argentina has approved its first lithium mining project under the newly established Large Investment Incentive Regime (RIGI). The "Rincón de Litio" (Lithium Corner) project, led by British-Australian multinational Rio Tinto, represents a US$2.7 billion investment aimed at scaling up the country’s capacity to supply critical battery materials to the global market.
Located in the lithium-rich province of Salta, the project is set to produce up to 60,000 tonnes of high-grade battery-quality lithium carbonate annually — a vital input for electric vehicles and renewable energy storage systems. Beyond its financial magnitude, the initiative underscores a broader strategic pivot towards industrial decarbonisation and green value chain integration.
The announcement was made by Argentina’s Energy and Mining Secretary, Daniel González, at the Arminera mining conference in Buenos Aires, and later endorsed by President Javier Milei at the AmCham Forum. “With RIGI, there is respect for the economic equation of the business,” Milei stated, referencing the generous fiscal, legal, and currency incentives designed to attract foreign capital exceeding US$200 million.
Rio Tinto acquired the project through its 2024 purchase of Arcadium Lithium’s operations and has already secured environmental approval for its development. Construction of the expanded plant is slated to begin in mid-2025, with production expected to commence in 2028. The current facility has a 3,000-tonne capacity, while the new build-out will bring that figure to 60,000 tonnes. Rio Tinto estimates a project lifespan of 40 years.
From the Net-Zero Circle perspective, this approval carries far-reaching implications for the global clean energy ecosystem. This is not merely about lithium extraction — it is about responsible mining practices, transparent supply chains, and generating local economic value while enabling global decarbonisation.
According to Rio Tinto, the investment reflects its long-term commitment to building a world-class portfolio of battery materials. Once operational, the Rincón de Litio project is expected to create hundreds of direct and indirect jobs and stimulate regional business growth through supply chain engagement and infrastructure development.
Lithium stands at the forefront of the race to net-zero. Argentina, alongside Chile and Bolivia, forms the so-called "lithium triangle", home to more than 60% of the world’s lithium resources. Projects like Rincón de Litio — bolstered by progressive frameworks like RIGI — are pivotal in transforming raw resource potential into sustainable industrial momentum.
For stakeholders across the energy transition spectrum — investors, technology developers, policy-makers and ESG funds — Argentina’s move signals an alignment of capital, policy and environmental foresight. It is a clear message that net-zero progress can be both economically viable and strategically sound.
