Rio Tinto (ASX, LON, NYSE: RIO) and UK-based refinery developer Green Lithium have formed a partnership to create an end-to-end lithium supply chain aimed at supporting the automotive and manufacturing sectors in the UK and EU.
“Our refineries will help accelerate the adoption of electric vehicles (EVs) and sustainable energy storage by increasing the supply of low-carbon, battery-grade lithium chemicals,” said Sean Sargent, CEO of Green Lithium, on Tuesday.
This collaboration positions both Rio Tinto and Green Lithium to capitalize on the rising demand for EV metals while contributing to decarbonization efforts and addressing the growing need for sustainable battery materials.
A key element of the partnership is Green Lithium’s plan to build and operate a large-scale lithium refinery in Teesside, England. The refinery will produce high-purity lithium chemicals for the UK and EU markets using advanced, low-carbon technology for processing spodumene concentrate.
As demand for battery metals in Europe surges, the region faces a shortage of domestic lithium refining capacity, a market largely dominated by Chinese companies. This underscores the strategic importance of the Green Lithium-Rio Tinto initiative.
UK Industry and Decarbonization Minister Sarah Jones commended the partnership, highlighting its role in strengthening the UK economy and critical minerals supply chain. “It will support high-skilled jobs in the North East and bolster our critical minerals supply chains as we continue building a greener, cleaner future for our automotive industry and drive toward net zero,” Jones said.
Beyond the UK, Rio Tinto is working to revive its Jadar lithium project in Serbia after the 2022 revocation of its mining license following protests over environmental concerns. Serbia recently reinstated the company’s license, though additional approvals are required before production can begin.
The Jadar project, with an annual output of 58,000 tonnes of refined battery-grade lithium carbonate, could supply enough lithium to power one million electric vehicles, meeting 90% of Europe’s current lithium demand.
