Rio Tinto plc Sponsored ADR (RIO.US) recognizes the strategic importance of lithium and partners with the Chilean National Copper Corporation to bet on the next lithium cycle.

The joint venture project between Chilean National Copper Corporation (Codelco) and Rio Tinto Group in Chile's lithium mine is progressing as planned. The CEO of Rio Tinto Group and lithium industry leader met with the Chairman of Codelco to discuss the Maricunga lithium project and copper exploration projects in Chile. The Chairman of Codelco stated that despite the signal from London-based mining company Rio Tinto Group to slow down its pace in battery metals, the lithium joint venture between Codelco and Rio Tinto Group in Chile is still progressing as planned. While Rio Tinto is slowing down on the project in Serbia and emphasizing a "staged strategy" for lithium resources, they are continuing to advance the Maricunga large-scale lithium mining project in Chile with Codelco and discussing specific lithium extraction techniques. This approach is not a pessimistic view of not exploring lithium mines, but rather a more strategic and cautious approach to lithium resources. Rio Tinto's latest strategy of positioning in lithium mines as "options" is aimed at quickly ramping up production when the next round of lithium demand and price resonance occurs, which may happen soon considering the global surge in energy storage demand. Codelco Chairman Maximo Pacheco stated that Rio Tinto CEO Simon Trott and lithium business leader Jerome Pecresse met with him in London on Wednesday to discuss the early-stage Maricunga lithium mining project and the copper exploration projects in Chile. Pacheco mentioned in a phone interview that both companies are in agreement on the future path of these projects, and added that the two-hour meeting also discussed the lithium extraction technology to be used. The strategic recognition of lithium mines by both parties sends a strong signal to the market that lithium is not just a passing trend, but a mainstay in the industry for years to come. With Rio Tinto suspending a lithium project in Serbia and Trott indicating a gradual approach for the metal due to oversupply and price pressures, the recent comments from Codelco's Chairman may alleviate concerns about lithium mining development in Chile. Trott, who took over from Jakob Stausholm in August, has been tasked with focusing more on mining operations and adopting a more cautious approach to capital expenditure. Stausholm had previously pushed for the lithium mining business, overseeing a major acquisition and signing a partnership agreement with Codelco and another Chilean state-owned mining company, Enami, for potential development of new projects in Chile. In May this year, Rio Tinto agreed to invest up to $900 million in Maricunga, but this investment is subject to several key approvals and depends on the final investment decision. Trott stated in London on Thursday to investors that lithium mining will be a crucial strategic business for Rio Tinto, and presented slides referring to the Chile project as "options". The partnership between Codelco and Rio Tinto in the Chilean lithium project will not immediately change the trend of lithium prices, but it does convey a clear message: global mining giants are not withdrawing from the lithium race amidst the strong demand for energy storage and electric vehicles, instead they are ramping up their investment in top-tier resources in a more restrained and selective manner. For investors, as global demand for energy storage surges, the lithium investment story is far from over; it has simply shifted from a period of "all-out revelry" to a more refined era where only a few winners will emerge, with high-quality resources commanding a premium. The resurgence of lithium investment frenzy from oversupply to "energy storage fever"? Recent industry research reports and the latest statistics on the lithium market indicate that the global lithium industry, which has been hit by continuous oversupply since 2022, is now expanding vigorously in response to the unprecedented wave of excitement surrounding large-scale battery energy storage driven by AI. With the unprecedented wave of AI bringing immense demand for electricity resources, government incentives, improved economic outlooks, and the expansion of electric vehicles, the confidence in the strong demand for energy storage systems (ESS) continues to grow. According to Citigroup's statistics, ESS is expected to play an increasingly important role, with its share in the global total battery demand projected to rise from about 20% last year to over one-third by 2030. When we talk about "battery energy storage", the majority of new storage projects are opting for lithium-ion batteries, locking lithium in a dominant position in the global energy storage technology roadmap. The latest report from the International Energy Agency (IEA) shows that lithium-ion batteries almost completely dominate electric vehicles and new energy storage projects. The CECEP Solar Energy Industry Association in the United States states that lithium-ion batteries are the primary form of battery energy storage for renewable energy sources, and global demand for lithium-ion battery storage is expected to experience explosive growth in the next decade. The roundtrip efficiency of lithium-ion battery storage is usually above 85%90%, with extremely fast charge/discharge response times in milliseconds, making them particularly suitable for peak shaving, frequency regulation, and backup power. While technologies such as flow batteries, sodium-ion batteries, and compressed air may have potential for certain long-duration energy storage scenarios, they lag significantly behind lithium-ion batteries in terms of scale, cost, and market acceptance, making it difficult for them to challenge lithium's dominant position in the short to medium term. With the rapid expansion or construction of global AI data centers led by Microsoft, Google, and Amazon, these data centers are significantly increasing their electricity demand, making the lithium industry a major beneficiary of the AI wave. This is mainly because at the system level, AI data centers significantly increase electricity demand, leading to an exponential increase in demand for energy storage and flexible power resources. A recent report by Morgan Stanley shows that US data center developers face a severe risk of power shortage, with an estimated supply-demand gap of 10-20% by 2027-2028, leading to significant execution risks for the grid system, and a surge in demand for off-grid solutions. Starting from 2026, with the accelerated advancement of mega AI infrastructure projects like "Stargate", natural gas generators and energy storage systems may become standard equipment for data centers. These joint efforts between Codelco and Rio Tinto in the Chilean lithium project will not immediately reverse the trend of lithium prices, but they do send a clear signal: global mining giants are not exiting the lithium race amidst the strong and long-term demand for energy storage and electric vehicles. Instead, they are increasing their investment in top-tier resources in a more restrained and selective manner. For investors, as global demand for energy storage surges, the dedicated lithium investment story has not ended; it has simply transitioned from a period of "all-out revelry" to a more refined era where only a few winners will emerge, with high-quality resources commanding a premium. From oversupply to "energy storage fever", will the lithium investment frenzy make a comeback? Recent industry research reports and the latest statistics on the lithium market show that the global lithium industry, which has been facing continuous oversupply since 2022, is now expanding vigorously in response to the unprecedented wave of excitement surrounding large-scale battery energy storage driven by AI. With the unprecedented wave of AI bringing immense demand for electricity resources, government incentives, improved economic outlooks, and the expansion of electric vehicles, the confidence in the strong demand for energy storage systems (ESS) continues to grow. According to Citigroup's statistics, ESS is expected to play an increasingly important role, with its share in the global total battery demand projected to rise from about 20% last year to over one-third by 2030. When we talk about "battery energy storage", the majority of new storage projects are opting for lithium-ion batteries, locking lithium in a dominant position in the global energy storage technology roadmap. The latest report from the International Energy Agency (IEA) shows that lithium-ion batteries almost completely dominate electric vehicles and new energy storage projects. The CECEP Solar Energy Industry Association in the United States states that lithium-ion batteries are the primary form of battery energy storage for renewable energy sources, and global demand for lithium-ion battery storage is expected to experience explosive growth in the next decade. The roundtrip efficiency of lithium-ion battery storage is usually above 85%90%, with extremely fast charge/discharge response times in milliseconds, making them particularly suitable for peak shaving, frequency regulation, and backup power. While technologies such as flow batteries, sodium-ion batteries, and compressed air may have potential for certain long-duration energy storage scenarios, they lag significantly behind lithium-ion batteries in terms of scale, cost, and market acceptance, making it difficult for them to challenge lithium's dominant position in the short to medium term. With the rapid expansion or construction of global AI data centers led by Microsoft, Google, and Amazon, these data centers are significantly increasing their electricity demand, making the lithium industry a major beneficiary of the AI wave. This is mainly because at the system level, AI data centers significantly increase electricity demand, leading to an exponential increase in demand for energy storage and flexible power resources. A recent report by Morgan Stanley shows that US data center developers face a severe risk of power shortage, with an estimated supply-demand gap of 10-20% by 2027-2028, leading to significant execution risks for the grid system, and a surge in demand for off-grid solutions. Starting from 2026, with the accelerated advancement of mega AI infrastructure projects like "Stargate", natural gas generators and energy storage systems may become standard equipment for data centers.