Can Argentina Set the Pace in the Global Lithium Race?

Rio Tinto’s $6.7B lithium deal unites key assets in Argentina, aiming to reshape EV supply chains by 2028.

18 Mar 2025

In a bold push to dominate the lithium market, mining giant Rio Tinto has struck a $6.7 billion deal to acquire Arcadium Lithium, placing some of Argentina’s most valuable lithium assets under one roof. The move instantly elevates Argentina’s role in the global shift to electric vehicles, turning the country into a major player in the high-stakes battery game.

With the acquisition, Rio Tinto now controls Arcadium’s producing Fénix and Olaroz operations alongside its own Rincón development. Together, they form one of South America’s largest lithium portfolios. The company has set its sights on producing more than 200,000 metric tons annually by 2028, enough to power millions of EVs and energy storage units.

The timing couldn’t be sharper. As demand for electric vehicles and clean energy surges, lithium supply chains are under pressure. Automakers and tech companies are scrambling for stable, high-quality sources. Argentina’s brine-rich salt flats offer exactly that, and now, with Rio Tinto in the driver’s seat, the country is better positioned than ever to deliver.

“This isn’t just a matter of size; it’s strategy,” said Buenos Aires mining consultant Andrew Worrall. “Rio Tinto is aligning extraction with long-term demand, and that’s a game-changer.”

But the consolidation comes with caveats. Some industry experts warn that centralizing ownership could reduce competition or sideline local interests. Others note that Argentina’s provincial rules and community expectations will require careful navigation. Still, the momentum is clear. This deal supercharges Argentina’s ambitions and places it near the front of the global lithium race.

With lithium demand expected to triple by 2035, and Argentina holding close to one-fifth of the world’s known reserves, the stakes are enormous. If Rio’s model works, integrating resources, cutting costs, and building trust, it could become the new standard for global lithium development.

For now, Argentina isn’t just part of the electric future, it may be helping to shape it!