Rio Tinto Opens Two Lithium Expansions in Argentina With Nearly $1.4 Billion Investment

Key Facts

Argentine President Javier Milei opened a new Rio Tinto facility at Salar del Hombre Muerto on October 28, announcing the launch of the Fenix 1B and Sal de Vida expansions with an investment of nearly $1.4 billion. The presidency said the projects add 25,000 tonnes a year of lithium carbonate production, expanding the company's presence in Argentina. The opening was framed within the country's RIGI incentive program for large-scale investments. The projects recorded first production in the second quarter of 2026, ahead of schedule, according to Rio Tinto data. The company said its lithium carbonate equivalent output rose 20% year over year in that quarter, with contributions from the Rincon plant and the start of production at the two new projects.

The announced addition was split between the Fenix 1B expansion and the Sal de Vida project, but available data specify each project's capacity in different ways. Fenix 1B adds about 10,000 tonnes a year to the existing operation, lifting the site's overall target to about 40,000 tonnes a year, according to coverage attributed to Reuters. Sal de Vida has a target capacity of 15,000 tonnes a year of lithium carbonate, according to Rio Tinto's project page. Fenix began operations in 1997, becoming Argentina's first commercial lithium project. The combination of expanding an existing site and starting production at a new project reflects the expansion path that began to appear in the company's 2026 figures.

Rio Tinto produced 14.6 thousand tonnes of lithium carbonate equivalent in the second quarter and reached 27.3 thousand tonnes in the first half of the year. First-half output increased 53% from the same period in 2025, while the company kept its full-year production guidance unchanged at 61 to 64 thousand tonnes. The company attributed second-quarter growth to higher production at the Rincon plant and initial volumes from Sal de Vida and Fenix 1B, meaning the increase did not come from the two projects alone. In a more recent reading, third-quarter data showed production reached 40.3 thousand tonnes in the first nine months of 2026, up 33% year over year. These figures indicate production growth, while reaching target capacity will depend on the continued ramp-up of the new facilities.

Rio Tinto said the ramp-up of Fenix 1B is progressing, but Sal de Vida's performance was slower than expected because of the availability of key equipment. The company said production was also affected by planned maintenance and weather during the third quarter. In the market, the average spot price for lithium carbonate was $19,022 a tonne in the third quarter, down 14% from the second-quarter average, according to company data. The quarterly price decline adds operating context to the expansion in production capacity, without changing the full-year production guidance the company kept at 61 to 64 thousand tonnes. Rio Tinto shares closed at $85.74 on October 27, according to EL7 data.

Milei said the Fenix expansion was "a historic milestone that demonstrates the potential of Argentina's mining sector." The presidency added that the Fenix 1B project allocated $310 million to Argentine suppliers, including $153 million to companies in Catamarca province. More broadly, Rio Tinto expects to direct about 70% of nearly $4 billion in growth capital earmarked for its Argentine lithium operations to local suppliers. These figures link industrial expansion to spending in the local economy, while supplier figures apply to the specific project or the company's Argentine operations, depending on each statement. The company is seeking to expand its lithium business through multiple projects in the country.

Rio Tinto is targeting annual global production capacity of 200,000 tonnes of lithium carbonate equivalent by 2028, according to Reuters coverage. Milei said the company's production capacity in Argentina would reach 160,000 tonnes a year after the Rincon project is completed. The broader Argentina target places the Fenix 1B and Sal de Vida expansions within a plan that also depends on completing Rincon. Third-quarter figures show that Sal de Vida's ramp-up remains slower than expected because of equipment availability, while the company said Fenix 1B is progressing. The announced expansion path will depend on the ramp-up of existing projects and the completion of Rincon, alongside the company's pursuit of its global target for 2028.