Argosy Minerals has completed detailed engineering for a 40MW energy infrastructure project to supply its Rincon Lithium Project in Argentina, marking a key step towards commercialisation and cost efficiency.
- 40MW medium voltage line designed to connect Rincon Project to Argentina’s national grid
- 8.6km transmission line and substation near Altiplano Solar Facility planned
- Tender process underway for construction of transmission line and transformer station
- Renewable energy Power Purchase Agreements being negotiated to reduce costs and emissions
- Infrastructure development de-risks project and supports future expansion to 12,000tpa lithium output
Strategic Energy Infrastructure Advances Rincon Project
Argosy Minerals Limited (ASX, AGY) has announced significant progress in powering its flagship Rincon Lithium Project in Salta Province, Argentina. The company has completed detailed engineering and feasibility studies for a 40MW medium voltage line (MVL) that will connect the project to the national electricity grid. This infrastructure milestone is critical for the planned 12,000 tonnes per annum lithium carbonate production and future expansions.
The Salta Electricity Distribution Company (EDESA) has finalised the design for an approximately 8.6-kilometre 33kV transmission line linking the Rincon site to a local substation adjacent to the 208MW Altiplano Solar Facility. This connection to the national grid promises to deliver reliable, grid-supplied power, reducing Argosy’s reliance on costly and carbon-intensive diesel generation.
Tender Process and Renewable Energy Integration
Argosy is now progressing to a competitive tender phase to select contractors for the construction of the transmission line and associated transformer station. While provisional cost estimates and delivery schedules have been developed, final figures will be refined through this process. Concurrently, the company is negotiating Power Purchase Agreements (PPAs) with local renewable energy providers, aiming to secure sustainable and cost-effective electricity supply that aligns with Argentina’s renewable energy transition.
Managing Director Jerko Zuvela highlighted the strategic advantage of this infrastructure, noting that access to grid power is a major barrier for many lithium projects in northwest Argentina. The proximity of Rincon to existing energy infrastructure positions Argosy favourably for operational reliability and cost savings, which are vital for the project’s economic viability.
Collaborative Regional Energy Development
The energy infrastructure program is coordinated alongside Rio Tinto’s neighbouring Rincon Project, with both companies planning parallel transmission lines connecting to the same substation. This collaboration underscores the growing importance of reliable, renewable energy access in the Lithium Triangle region, which hosts some of the world’s largest lithium resources.
By securing grid connection and integrating renewable energy, Argosy is not only advancing its feasibility studies but also reinforcing Rincon’s credentials as a low-carbon lithium asset. This development supports the company’s broader ambition to build a sustainable lithium production business, capitalising on the surging demand for battery-grade lithium carbonate driven by the global electric vehicle and energy storage markets.
Bottom Line?
Argosy’s grid connection breakthrough sets the stage for cost-efficient, sustainable lithium production at Rincon.
Questions in the middle?
- What are the final cost and timeline outcomes from the upcoming tender process for the transmission line?
- How will the negotiated Power Purchase Agreements impact Argosy’s operational costs and carbon footprint?
- What are the prospects and timelines for expanding Rincon’s production beyond the initial 12,000tpa target?