Rio Tinto CEO: Optimistic about continued growth in lithium demand but not considering large-scale acquisitions.

Rio Tinto (RIO.US) CEO Jakob Stausholm said last Sunday that demand for key battery mineral lithium will continue to grow, supported by the strong adoption of electric vehicles, but the price of this metal is expected to fluctuate. Nevertheless, Stausholm stated that Rio Tinto will avoid any large-scale acquisitions to develop its lithium business, and instead is seeking ways to improve lithium extraction technology. Rio Tinto, the world's largest iron ore producer, is one of the few large mining companies betting on lithium, which is used for developing electric vehicle batteries, but competitors such as BHP (BHP.US) are not willing to invest in lithium. Weak demand for electric vehicles has dragged down lithium prices, with a basket of lithium prices tracked by Benchmark Mineral Intelligence plummeting by over 80% in the past 12 months. This has forced many producers to shut down production and lay off employees. Stausholm said at the annual PDAC conference in Toronto: "We have always believed that the price of battery materials will fluctuate." The PDAC conference, held from last Sunday to Wednesday, is one of the largest gatherings of mining companies and their financiers globally. Stausholm added: "Ideally, you will need more battery capacity, not just for electric vehicle batteries but also for stationary storage batteries. So, I have no doubt that there will be more batteries in the world. Therefore, you will need more lithium." Currently, Rio Tinto is developing the Rincon project in Argentina, which has the largest share of lithium resources in salt lakes globally. It is a lithium brine mine, and the company plans to develop a battery-grade lithium carbonate plant with an annual capacity of 3,000 tons. Production is expected to start by the end of 2024. The company also owns the Jadar lithium project in Serbia, which had its license revoked by Serbia in 2022 due to environmental issues. The project is currently in dispute.