RIO Selected as Preferred Partner by ENAMI for Chilean Lithium Project

Rio Tinto Group RIO has been named the preferred partner of Chile’s state-owned mining company, Empresa Nacional de Minería (ENAMI), for the development of the Salares Altoandinos lithium project in the Atacama region. The project has the potential to be a world-class lithium development.
Per the proposal, Rio Tinto would acquire an initial 51% stake in the project with ENAMI holding the remaining 49%. The transaction, however, remains subject to the signature of binding agreements, receipt of regulatory approvals and the satisfaction of other customary closing conditions.

Rio Tinto’s Efforts to Grow Lithium Portfolio

Lithium prices have declined 40% in a year due to an oversupplied market. Considering that lithium is expected to play an essential part in the transition to a low-carbon, clean-energy economy, the demand for the metal is expected to grow in the years to come. Rio Tinto has been working on building its lithium portfolio to capitalize on this expected demand surge. With the market likely headed for a deficit, prices will pick up eventually.

In 2022, RIO acquired the Rincon lithium project in Argentina. Rincon has the capacity to produce 60,000 tons of battery-grade lithium carbonate per year. First production is expected in 2028, followed by a three-year ramp-up to full capacity. It is expected to operate in the lowest quartile of the cost curve and has an expected mine life of around 40 years.

Project work is in progress at Sal de Vida in Argentina, with production expected to start in 2027. The Nemaska Lithium project in Quebec, Canada, in which RIO has a 50% stake, is expected to start production in 2028.

Earlier this year, Rio Tinto acquired Arcadium Lithium. With its high-quality assets, diverse product portfolio, focus on innovation and robust growth strategy, Arcadium is expected to play a central role in RIO’s lithium expansion plans.

Rio Tinto recently inked a binding agreement with Codelco to form a joint venture for a lithium project in Chile's Salar de Maricunga. The current partnership with ENAMI for the Altoandinos project further reinforces RIO’s presence in Chile. Backed by its concerted efforts, Rio Tinto now holds one of the world’s largest lithium portfolios. 

RIO Stock’s Price Performance

In the past year, shares of Rio Tinto have lost 14.9% compared with the industry’s 12.7% decline.

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Rio Tinto’s Zacks Rank & Stocks to Consider

The company currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation CRS, Agnico Eagle Mines AEM and Hawkins HWKN, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Carpenter Technology has an average trailing four-quarter earnings surprise of 11.10%. The Zacks Consensus Estimate for Carpenter Technology’s fiscal 2025 earnings is pegged at $7.27 per share, indicating 53.4% year-over-year growth. CRS shares have surged 106% in a year.

Agnico Eagle Mines has an average trailing four-quarter earnings surprise of 8.2%. The Zacks Consensus Estimate for AEM’s fiscal 2026 earnings is pegged at $4.54 per share, indicating year-over-year growth of 12.7%. Agnico Eagle Mines shares have appreciated 69% in a year.

The Zacks Consensus Estimate for Hawkins’ fiscal 2026 earnings is pegged at $4.54 per share, indicating year-over-year growth of 12.7%. HWKN shares have gained 2.5% year to date.

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This article originally published on Zacks Investment Research (zacks.com).

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