Supporting Argentina’s move to capture more value from its mineral wealth the International Finance Corporation (IFC), which is a member of the World Bank, is partnering with Rio Tinto to advance a large-scale greenfield lithium project.
The Rincón Lithium Project, which is being developed in the province of Salta, Argentina, is set to produce around 53 000 tonnes of battery-grade lithium carbonate each year, over its projected 40-year lifespan. This output would be enough to power more than 1 million electric vehicles each year, the IFC says. The production could rise to 60 000 tonnes once efforts to optimise production are completed.
The project will use direct lithium extraction technology, which is said to offer higher yields than conventional evaporation techniques. The IFC added that the project will also “reinforce Argentina’s role as a “leading global supplier for decades to come.”
The IFC has said that by producing battery-grade lithium carbonate at scale, the project will support local employment and economic diversification in the Salta province, while strengthening global supply chains for critical minerals. This is also in line with the World Bank Group’s Metals and Minerals Strategy. The strategy supports countries in realising the full potential of their minerals to allow more value and jobs to benefit the local economy.
Requiring a total investment of $2.5 billion, the IFC is providing a direct loan of $400 million. This is part of a broader $1.175 billion financing package. The project is also being supported by “parallel lenders’ including IDB Invest and export credit agencies of Japan and Australia.
“With strong international co-financing, we are demonstrating how private capital can accelerate the energy transition while delivering lasting economic benefit across emerging markets,” said Makhtar Diop, managing director at the IFC.
Construction of the plant began in 2025 and production is slated to start in 2028, with a three-year ramp up to full capacity.
The IFC said that it anticipates that the project will deliver economy-wide benefits and positive impacts for local communities as well as positively impacting the economy at both national and regional levels.
Further reading:
- Battery quality lithium project gets major funding boost
- Lithium-ion battery recycling: Measuring the environmental benefits
- Europe’s first large-scale lithium refinery will be in UK
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