Rio Tinto's lithium production capacity is expected to reach 200,000 tons per year by 2028.

Rio Tinto CFO Peter Cunningham stated during the earnings call that as all of the company’s projects are progressing as planned, Rio Tinto’s lithium capacity is expected to reach 200,000 tons of lithium carbonate equivalent annually by 2028.

This growth is mainly driven by two expansion projects and two new projects that will come online in the next few years. At that time, production will be more than three times the 57,000 tons of lithium carbonate produced in 2025 (based on equity share).

Rio Tinto has previously indicated an intention to increase lithium capacity to 200,000 tons per year, but this target depends on market conditions and attractive returns. Cunningham has now confirmed that the company is focused on achieving this goal, making lithium a “significant” part of Rio Tinto’s business structure.

Rio Tinto is particularly optimistic about the growth of Battery Energy Storage Systems (BESS), believing it will become a steady driver of lithium demand.

“The lithium market is recovering to supply-demand balance earlier than expected,” Cunningham said. “Demand for battery energy storage is emerging as a rapidly growing pillar in energy transition, currently outpacing electric vehicles.”

New Projects and Expansions Support Rio Tinto’s Goals

The 10,000-ton-per-year expansion of the flagship Fenix project in Argentina is currently operating at full capacity, and the 15,000-ton-per-year Sal de Vida project is expected to increase Rio Tinto’s lithium production in 2026 to 61,000–64,000 tons of LCE.

Rio Tinto stated that both projects have achieved “mechanical completion,” with 60% and 40% of commissioning completed respectively. Operations are expected to produce the first products in the second half of this year and gradually ramp up to full capacity.

The Rincon project in Argentina and the Nemaska project in Canada will also support Rio Tinto in reaching the 200,000-ton annual target, both planning to start production by 2028.

The Rincon project’s initial plant with a capacity of 3,000 tons per year is progressing smoothly and is expected to reach full capacity before the end of the year, contributing to Rio Tinto’s 2026 lithium output guidance. Once fully built, the project’s designed annual capacity is 60,000 tons and is currently under construction. The Nemaska project has a designed capacity of 28,000 tons per year.

Rio Tinto Expands in Canada and Advances Chilean Projects

Rio Tinto has acquired a controlling stake in the Nemaska project and is managing it, while also advancing two assets in Chile.

The company currently holds 53.9% of the Nemaska project and has taken over its operations; the remaining 46.1% is held by the Quebec government.

Rio Tinto plans to develop an integrated lithium supply chain from mining to refining in Quebec. The Nemaska mine project is about 60% complete, with first production planned for 2028; the Bécancour lithium hydroxide refinery is expected to start operations this year and produce its first products in 2028.

In Chile, Rio Tinto expects the agreements signed with state-owned mining companies Codelco and Enami to be finalized in the first half of 2026. The company has been selected as a private partner to develop two of Chile’s largest undeveloped lithium resources, with projects to be advanced after the agreements are completed.

Rio Tinto stated that its investment in lithium expansion projects exceeded $1 billion in 2025.