Highlights

  • Rio Tinto (ASX:RIO) has formally opened Fénix 1B (10,000 tpa) and Sal de Vida (15,000 tpa) in Argentina's Catamarca province, with combined investment of approximately US$1.4 billion.
  • Both projects reached first production in the June quarter and are now ramping up toward nameplate capacity.
  • The additions lift Fénix's targeted capacity to approximately 40,000 tpa and add 25,000 tpa combined to Rio Tinto's Argentine lithium portfolio.
  • Rio Tinto is targeting 200,000 tpa of lithium carbonate equivalent production capacity by 2028, with approximately US$4 billion in growth capital planned for its Argentine operations.

Formal Opening Marks Commercial Start

Rio Tinto has officially opened two lithium carbonate operations in Argentina's Catamarca province: the Fénix 1B expansion and the new Sal de Vida project. An opening ceremony at the Fénix site on 28 October 2026 was attended by President Javier Milei and Catamarca governor Raúl Jalil, alongside company employees, suppliers and community representatives. Combined investment in the two projects is approximately US$1.4 billion.

Capacity Added

Fénix 1B adds 10,000 tonnes per annum of lithium carbonate equivalent, lifting the Fénix operation's targeted capacity to approximately 40,000 tpa. Fénix, which began operations in 1997, is Argentina's original commercial lithium operation. Sal de Vida, approximately 20 kilometres northeast of Fénix, is a new lithium carbonate facility designed for 15,000 tpa. Both projects reached first production in the June quarter ahead of plan. Together they add 25,000 tpa as they ramp toward nameplate rates.

The 200,000-Tonne 2028 Target

The two Catamarca projects cover only part of Rio Tinto's stated goal of 200,000 tpa of lithium carbonate equivalent production capacity by 2028. The balance of the growth must come from Rincon in Salta province, expected to produce 60,000 tpa, plus additional projects. Rio Tinto plans approximately US$4 billion of growth capital across its Argentine operations, with around 70% expected to be spent with local suppliers.

Technology and Policy Context

Rio Tinto is building its lithium business around direct lithium extraction technology, which reduces reliance on large evaporation ponds and can shorten production timelines. Questions remain in the industry over costs, scalability and long-term performance. Argentina's investment incentive regime offers tax and foreign-exchange benefits for 30 years for projects above US$200 million, supporting the economics of long-life brine projects.

What to Watch

The near-term markers are the ramp-up of Fénix 1B and Sal de Vida to nameplate rates, progress at Rincon and other development projects, and quarterly production reports that will track output as the company works toward its 2028 capacity goal.