Diversified global miner Rio Tinto has made the next significant step into battery metals, committing $900 million for a 49.99% stake in Chile's Salar de Maricunga, a world-class lithium project controlled by the Chilean state-owned miner Codelco.

"We are honoured to be chosen as Codelco's partner to deliver a world-class project using direct lithium extraction technology in the Salar de Maricunga," Rio Tinto's CEO Jakob Stausholm said Monday.

"Codelco is a strategic partner for Rio Tinto in Chile… we aim to bring significant investment and long-term benefits to the Atacama region as we advance Maricunga and Nuevo Cobre together."

The Salar de Maricunga, located in Chile's Atacama region, is one of the world's highest-grade undeveloped lithium brine resources and holds the potential for scalable, long-life, low-cost production. The joint venture plans to use direct lithium extraction technology to boost efficiency and reduce environmental impact, particularly regarding water usage, a critical issue in the arid zone like Northern Chile.

As part of the deal, Rio Tinto will make an initial $350 million investment to support feasibility studies and resource evaluations needed for a final investment decision. If the project proceeds to construction, another $500 million will be injected, and a $50 million bonus payment will be made if lithium production begins by the end of 2030.

Codelco Chairman Máximo Pacheco noted the deal's strategic importance for Chile's energy future.

"This project continues our lithium diversification strategy, which is essential for the energy transition, with a world-class partner in Rio Tinto that represents the most attractive option for Codelco and the country," he said.

The investment marks Rio Tinto's latest expansion into South American lithium after acquiring Arcadium Lithium for $6.7 billion last year. The new partnership in Chile deepens Rio's regional presence and strengthens its role as a global lithium player.

While Rio's lithium ambitions are growing, market conditions remain subdued, prompting sector leaders like Albemarle to pause the $1.3 billion US plant project. In Q1 2025, lithium prices hit four-year lows, driven by global oversupply and weaker-than-expected electric vehicle demand.

"We're expecting this year for the market to remain in surplus," Adam Webb, head of battery raw materials at Benchmark Mineral Intelligence, said per INN.

Webb noted that current price levels, around $10,400 per metric ton, are unsustainable, with about a third of global producers operating at a loss. However, from 2026 onward, the market is forecast to tip into deficit. Long-term projections suggest a 12–15% compound annual growth rate for lithium demand, with prices expected to rebound to support new supply development, ultimately driven by expanding EV and energy storage sectors.

Price Action: RIO share traded lower by 0.43% to $62.12 premarket at the last check Tuesday.

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