Rio Tinto has obtained a financing package totalling $1.17bn (£872.27m) to advance the Rincon lithium project in Salta Province, Argentina.

The funding is being provided by the International Finance Corporation (IFC), Export Finance Australia (EFA), IDB Invest and the Japan Bank for International Cooperation (JBIC).

This financial backing will aid in the development of the Rincon project, which requires an estimated investment of $2.5bn and aims to produce around 60,000 tonnes per annum (tpa) of battery-grade lithium carbonate.

The plant construction commenced last year, incorporating camp expansion and site infrastructure development.

It is set to commence production in 2028, with a gradual increase to full capacity over a three-year period.

The Rincon lithium project is expected to remain operational for 40 years.

Rio Tinto aluminium and lithium chief executive Jérôme Pécresse said: “This financing package broadens our funding sources for the Rincon project and supports the continued execution of our lithium growth pipeline, which is underpinned by the attractive long-term outlook driven by the energy transition.

“We appreciate the strong support from IFC, IDB Invest, Export Finance Australia and JBIC as we progress the Rincon project.”

Earlier this month, Rio Tinto approved a £354.61m investment for the Zulti South project at Richards Bay Minerals (RBM) in South Africa, lifting the suspension that had been in effect since January 2020.

This investment is intended to extend the mine's operational life until 2050, maintaining production at RBM.

Presently, RBM operates from the Zulti North lease area, which includes a mineral separation plant and a smelting facility.