4. Rio Tinto Group (NYSE:RIO)
Market Capitalization as of September 6: $98 billion
Number of Hedge Fund Holders: 29
Rio Tinto Group (NYSE:RIO) is involved in the exploration, extraction, and processing of mineral resources on a global scale. Its Minerals segment focuses on the mining and processing of borates, titanium dioxide feedstock, and developing projects related to battery materials like lithium. It is one of the biggest lithium stocks to buy right now.
In the second quarter, 29 hedge funds held positions in Rio Tinto (NYSE:RIO) and their stakes amounted to $1.3 billion. As of June 30, Fisher Asset Management is the most dominant shareholder in the company and has a position worth $1.123 billion.
Rio Tinto (NYSE:RIO) is making significant strides in the global mining sector, particularly in the field of critical minerals and large-scale projects. As one of the largest iron ore producers worldwide, the company is also expanding its footprint in the lithium market, driven by the growing demand for EV batteries and energy storage solutions.
The company is taking a deliberate approach to becoming a major player in the lithium industry. Instead of pursuing large-scale acquisitions, it is focusing on developing its own lithium resources and improving extraction technologies. This method aligns with the vision of Rio Tinto’s CEO, Jakob Stausholm, who believes that the global demand for battery capacity will drive the need for more lithium, not only for EVs but also for stationary batteries.
In line with this vision, the company has invested heavily in the Rincon lithium project in Argentina, a key part of the lithium-rich “lithium triangle” that spans Argentina, Bolivia, and Chile. Acquired for $825 million in 2022, the project is set to include a battery-grade lithium carbonate plant with an initial capacity of 3,000 tonnes per year.
The company plans to invest an additional $350 million in the project, with production anticipated to begin by the end of 2024. The investment positions it to capitalize on the high demand for lithium in the future.
In addition to its lithium ventures, Rio Tinto (NYSE:RIO) is gearing up for a major development in West Africa. The Simandou project in Guinea, a $20 billion project, aims to extract iron ore from the world’s largest untapped high-grade reserve.
After a nearly 27-year delay, the project is now moving forward with several partners, including the Guinean Government and several Chinese companies. The first shipment of ore is projected for 2025, with a goal of reaching full production of 60 million tonnes per year by 2028. This output would represent around 5% of the global seaborne iron ore market.
Furthermore, the company is involved in Serbia through its Jadar project, where the government has reinstated a spatial plan for a lithium mine and processing plant. Despite previous setbacks due to public protests, the project is expected to contribute significantly to the local economy, creating about 1,000 long-term jobs and generating substantial revenue from lithium production. If it is developed, the $2.4 billion Jadar lithium project in Western Serbia has the potential to meet 90% of Europe’s current lithium demand and position the company as a top lithium producer.
