Rio Tinto Confirms Major Lithium Expansion in Argentina's Salta Province
Mining giant Rio Tinto confirmed a US$2.7 billion investment for its Rincón lithium project in Argentina's northwestern Salta province, with production capacity of 50,000 tonnes of battery-grade lithium carbonate annually. The first production line is scheduled to commence operations in 2028, with the project expected to create approximately 600 permanent jobs during the operational phase. The announcement was made during discussions between Rio Tinto executives and Salta's governor in Paris on October 2.
Rio Tinto acquired the Rincón project in 2021 and achieved a milestone in May 2025 by becoming the inaugural mining venture to secure approval under Argentina's RIGI investment incentive framework. The Salta province, located in the Puna highlands of northwestern Argentina, sits within a region recognized for substantial lithium reserves. The announcement marks a significant commitment to the region's mineral extraction sector during a period when global demand for battery materials continues to rise.
The employment trajectory reflects distinct phases of project development. Construction currently sustains 255 direct positions alongside approximately 2,400 indirect jobs. This figure is projected to peak above 4,000 indirect positions between April and July 2027 as development intensifies. Upon full operational status, the facility would generate roughly 600 permanent direct positions for the local workforce.
The investment could strengthen Argentina's position as a major lithium supplier while generating substantial economic activity in Salta during the construction phase. Local suppliers and workers may experience increased demand and income opportunities, particularly through 2027. However, the project's long-term viability depends on volatile lithium prices and global battery market conditions, which remain uncertain. The operation could also influence regional development patterns and resource management practices in this ecologically sensitive high-altitude region.