Rio Tinto has formally opened its Fénix 1B expansion and new Sal de Vida lithium operation in Argentina's Catamarca province, after investing about $1.4 billion. Once fully ramped up, they will add 25,000 tonnes a year of lithium carbonate equivalent capacity.
At a glance
- Both projects started production in the second quarter, ahead of plan, and are now ramping up.
- Rio Tinto targets 200,000 tonnes of annual lithium capacity worldwide by 2028.
- Around 70% of about $4 billion in planned Argentine lithium investment is expected to go to local suppliers.
Background
Lithium carbonate equivalent (LCE) is a standard measure that converts different lithium products into one unit. Lithium is used mainly in batteries for electric vehicles and energy storage. Fénix began operating in 1997 as Argentina's first commercial lithium operation.
What happened
Rio Tinto said Argentine President Javier Milei and Catamarca Governor Raúl Jalil joined chief executive Simon Trott on October 28 to open the Fénix 1B expansion and the Sal de Vida operation. The combined investment was about $1.4 billion.
Both projects reached first production in the second quarter, ahead of plan, and are now ramping up.
What they add
Fénix 1B adds 10,000 tonnes a year of lithium carbonate equivalent, raising Fénix's total target capacity to about 40,000 tonnes. Sal de Vida, about 20 km northeast of Fénix, is a new operation with a target of 15,000 tonnes a year.
Together they will add 25,000 tonnes a year once fully ramped up. Trott said the projects support Rio Tinto's goal of 200,000 tonnes of annual lithium capacity by 2028.
What it means
Rio Tinto's Argentine lithium business spans operations and projects across Catamarca, Jujuy and Salta, including the Rincon project. About 70% of the roughly $4 billion it plans to invest in growth across its Argentine lithium operations is expected to be spent with local suppliers.
Milei said the expansion showed the potential of Argentina's mining sector and was made possible by new incentives for producing essential resources.
Our read
Outlook: bearish. New Argentine capacity adds lithium supply at a time when prices are already falling.
What to watch
- How quickly Fénix 1B and Sal de Vida reach full capacity.
- Progress at Rio Tinto's Rincon lithium project.
- Lithium prices, which fell 13% in the third quarter, according to the World Bank.
For information only, not investment advice.
Lithium price in India
metalscost.com India reference price as of 2026-11-01.
Detailed analysis
Timeline
- 2026-10-28: Rio Tinto formally opens Fénix 1B and Sal de Vida in Catamarca.
Supply Drivers
Two new Argentine operations add 25,000 tonnes a year of lithium capacity.
What could lift prices
- Both projects are still ramping up, so full output is not yet reached.
- Rio Tinto's investment shows confidence in long-term lithium demand.
What could weigh on prices
- New capacity adds to lithium supply while prices are falling.
- Rio Tinto aims for 200,000 tonnes of capacity by 2028.
Country impact
| Country | Impact | Reason |
|---|---|---|
| Argentina | Medium | Two new lithium operations bring investment and jobs to Catamarca. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Lithium Mining | Positive | A major miner is expanding lithium production in Argentina. |
Who gains, who loses
- Argentine suppliers: About 70% of Rio Tinto's planned $4 billion lithium spending is expected to go to local suppliers.
- Higher-cost lithium producers: More supply could keep prices under pressure.
Other ways this could play out
- If ramp-ups go smoothly, Rio Tinto could become a leading lithium supplier by 2028.
- If lithium prices keep falling, the company may slow further spending.
Price risks
- New lithium operations can take longer than planned to reach full output.
- Policy changes in Argentina could affect investment incentives.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
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Argentina