Rio Tinto, Eramet submit plans to develop lithium extraction tech in Chile

Miners Rio Tinto (NYSE: RIO; LSE: RIO; ASX: RIO) and Eramet, along with battery maker LG Energy, are among 30 companies from 12 countries that have presented plans to develop lithium extraction technology in Chile’s salt flats.

The tender process, run by state-owned miner Enami, kicked off in early March. Enami is seeking the best approach to develop untouched salt flats in northern Chile, particularly the Salares Altoandinos project, which spans about 260 sq. km in the Atacama region.

“It is crucial for Enami to learn about processes that contribute to the creation of projects with the lowest possible environmental impact,” the company said in a statement.

“We seek to collaborate in the construction of a sustainable future, where the production of critical minerals plays a key role in the energy transition and development,” it added.

Enami will now consider carrying out tests with one or more of the bidding companies, it said. 

The Chilean miner is one of two entities assigned to represent the state under President Gabriel Boric’s new public-private model for tapping the country’s lithium reserves, one of the world’s biggest.

Rio Tinto is among the few top miners that are investing in lithium. It has already committed US$350 million for its Rincon lithium plant in Argentina, with production expected by the end of the year. 

France’s Eramet is progressing the Centenario lithium project in Argentina, which is slated to produce about 30,000 tonnes annually of lithium carbonate equivalent (LCE). This is on top of the 24,000 tonnes targeted in a first phase that will enter production in the second quarter of 2024. 

Eramet has also entered into farm-in agreements and it’s currently seeking exploration and mining rights in northern Chile.

The copper-rich nation recently published a long-awaited list of lithium-bearing salt flats open to private investment. The government’s goal is to increasing local production of the battery metal by 70% in a decade, with three or four new projects under development by 2026. 

Global demand for lithium, according to the Chile’s own projections, will quadruple by 2030, reaching 1.8 million tonnes. Available supply by then is expected to sit at 1.5 million tonnes. 

Lithium carbonate exports represented 5.3% of total Chilean shipments in 2023, down from 8.4% the previous year.