Rio Tinto has been confirmed as the preferred partner for the Salares Altoandinos lithium project in Chile's Atacama region, as announced by Empresa Nacional de Minería (ENAMI), the state-owned Chilean mining company.

Under the proposed terms, Rio Tinto will acquire a 51% stake in the project, with ENAMI retaining the remaining 49%.

The completion of this transaction is contingent upon the execution of binding agreements, regulatory approvals and other standard closing conditions.

Rio Tinto is set to advance the preliminary and detailed feasibility studies, paving the way for a conclusive final investment decision (FID).

The company will contribute $425m (£315.19m) in cash and non-cash resources, encompassing its proprietary direct lithium extraction (DLE) technology.

This financial commitment will cover phased expenditures dedicated to fully financing the initial feasibility study and subsequent research phases.

Rio Tinto chief executive Jakob Stausholm said: “We are honoured to have been selected by ENAMI as the preferred partner for the Salares Altoandinos project, which has the potential to be a world-class lithium development.

“We welcome the opportunity to develop our partnership with ENAMI, building on our interests in Nuevo Cobre and Salar de Maricunga, and to support Chile’s position as one of the world’s leading producers of minerals critical to the energy transition.”

The Atacama region in Chile is known for its vast potential, which could allow for the creation of a significant copper and lithium district, subject to further studies, while benefitting from synergies through partnerships to maximise the region's potential.

Rio Tinto's strategy includes leveraging investments in shared infrastructure such as power and logistics across multiple projects.

This approach will facilitate an integrated and coordinated effort to enhance engagement with local communities.

The deal with ENAMI follows Rio Tinto’s recent agreement with Codelco to invest $900m in the Salar de Maricunga lithium project, which is also located in the Atacama region.

According to the terms of the agreement, Rio Tinto will acquire a 49.99% stake in Salar de Maricunga SpA, the entity through which Codelco manages its licences and mining concessions for the Salar de Maricunga project, by financing studies and development costs.