Rio Tinto to Build Batteries in Melbourne to Test Green Tech

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(Bloomberg) — Rio Tinto Group plans to start building its own batteries at a laboratory in Melbourne later this year to experiment with technologies in the rapidly-growing clean energy sector.

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The world’s second-biggest miner aims to be a major producer of lithium and other battery metals. 

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The laboratory will deepen Rio’s “skills and expertise and ultimately enhance our customer proposition,” Chief Executive of Minerals Sinead Kaufman said at a conference in Brisbane on Wednesday.  

“At this lab we will build our own batteries, allowing us to test how our minerals and other products will perform in real-world applications, such as in electric vehicle batteries,” she said, adding that the laboratory would be operational from November. 

The Anglo-Australian miner doesn’t intend to become a commercial battery manufacturer, a Rio spokesman said.

Read More: Lithium Takeover Blitz Looms, But Rio Tinto Says Buyers Beware

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An iron ore, copper and aluminum miner, Rio doesn’t currently produce any lithium. But it has put the material, a core component in EV batteries, at the center of its future growth plans. It has a lithium project in Argentina and hopes to develop what would be Europe’s largest lithium mine in Serbia, despite having its application blocked by authorities there early this year. 

Small to mid-sized miners still dominate the lithium sector, with big names like Rio yet to make an impact. However, many in the industry expect a run of consolidation in coming years, and Rio is thought to be among those hunting for acquisitions.