Rio Tinto has announced a significant $2.5 billion investment to expand its lithium production at the Rincon project in Argentina, marking its first commercial-scale lithium operation. The project is situated in the Lithium Triangle, a region that spans Argentina, Bolivia, and Chile and contains 60% of the world's lithium reserves, making it a crucial area for global lithium supply.

With this investment, Rio Tinto aims to increase its lithium carbonate production capacity from 3,000 tonnes to 60,000 tonnes per year by 2028. Lithium carbonate is a key component in electric vehicle (EV) batteries, and this expansion comes in response to rising demand driven by the growing electric vehicle market.

In 2023, Argentina ranked as the fourth-largest lithium producer globally, following Australia, Chile, and China. This development follows a trend of increasing lithium investments in the region, with other major players like the French mining group Eramet also opening production facilities in the Salta province, contributing to Europe's lithium needs.

Meanwhile, Bolivia is also positioning itself to capitalize on the surging demand for lithium, with new extraction projects in partnership with Russian and Chinese companies, highlighting the strategic importance of the region in the global lithium supply chain.