Why Rio Tinto’s Chile Deal Looks to the 2030s

Rio Tinto and ENAMI sign a lithium JV in Chile, highlighting cleaner extraction, stronger state ties, and a long-term play for future battery supply

16 Dec 2025

Chile’s lithium story has reached a turning point, and a new partnership is quietly setting the direction. An agreement signed in mid-2025 between mining giant Rio Tinto and state-backed ENAMI points to how the country wants its most prized battery metal developed in the years ahead.

The two groups plan to form a joint venture to advance the Salares Altoandinos project in northern Chile. The area is rich in lithium brines and equally known for environmental sensitivity. The project is still early-stage, with regulatory approvals, technical studies, and feasibility work ahead. If everything lines up, production is widely expected to begin in the early 2030s, with 2032 often mentioned as a target.

That long timeline does not diminish the deal’s importance. Governments, automakers, and energy companies are scrambling to lock in lithium for electric vehicles and grid storage, even as scrutiny over water use and local impacts grows sharper. Agreements signed now are about shaping supply a decade from today, not next year’s output.

For Rio Tinto, the move is a patient bet. By investing capital and technical know-how before production is guaranteed, the company is positioning itself for future demand rather than chasing quick returns. For ENAMI, the partnership fits neatly with Chile’s evolving lithium strategy, which emphasizes state participation, national oversight, and selective collaboration with foreign miners.

A key feature of the project is its focus on lower-impact extraction. Instead of relying mainly on vast evaporation ponds, the joint venture plans to study newer methods that aim to extract lithium more efficiently while reinjecting much of the remaining brine underground. Advocates say this could ease pressure on water resources in the Atacama, though the approach still needs to prove itself at scale.

Skeptics note that many hurdles remain. Permitting, community engagement, and technical performance will ultimately decide whether this model can deliver on its promise.

Still, the message is unmistakable. The Rio Tinto and ENAMI agreement shows a lithium market increasingly shaped by collaboration, innovation, and sustainability. Its real impact will unfold slowly, but it already signals how Chile intends to compete in the next chapter of the global lithium race.