Global mining giant Rio Tinto is doubling down on its long-term lithium strategy, despite industry skepticism and a major leadership transition. Outgoing CEO Jakob Stausholm has firmly denied that tensions with the company’s board influenced his decision to step down later this year.
Speaking at the launch of the Western Range project in Australia’s Pilbara region — a joint iron ore venture with Chinese steelmaker Baowu — Stausholm emphasized that Rio’s board remains “absolutely aligned” on its push into lithium, even as prices for the critical battery metal hover at four-year lows.
“The lithium strategy we are absolutely aligned about in the whole board. This is a next pillar,” Stausholm said.
Rio’s recent $10 billion acquisition of Allkem, an Argentine brine producer, marked a bold entry into lithium at a time of market volatility. The move complements its core iron ore operations, which are undergoing major overhauls to address declining ore quality and ensure long-term output sustainability.
Stausholm, who took over after the Juukan Gorge cave destruction scandal in 2020, helped steer Rio toward stronger ESG commitments and diversification beyond iron ore.
“We need to think about the future to the next decade and the next decade,” he said.
“We have built now a portfolio of outstanding brine resources in Argentina and Chile. It’s going to complement our signature business of iron ore.”
Rio plans to launch five new replacement iron ore mines in the next five years, starting with the 25Mtpa Western Range, underscoring its focus on maintaining global leadership in the sector while preparing for the green energy transition.
