Rio Tinto Bets on Unproven Lithium Tech in Chile Amid Price Slump

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Global mining giant Rio Tinto is entering Chile’s lithium sector with two major projects—Maricunga and Altoandinos—in partnership with state-run miners Codelco and ENAMI, respectively. The move marks a significant shift for Chile, which has long relied on just two lithium producers: SQM and Albemarle.

Rio will lead operations at both sites, holding nearly 50% of Maricunga and 51% of Altoandinos, signaling its boldest step yet into the battery metal market. However, the strategy hinges on the deployment of direct lithium extraction (DLE)—a promising but yet unproven technology at commercial scale in Chile.

Why It Matters

  • DLE technology is more environmentally friendly than traditional brine evaporation, but has never been commercialized in Chile and still poses significant operational risks.

  • The move comes amid a 90% drop in lithium prices since late 2022, as global EV demand softens and oversupply persists.

  • Rio’s dual-deal entry follows its recent acquisition of Arcadium Lithium and a DLE pilot in Argentina, giving it a perceived edge over rival bidders.

Project Details

  • Maricunga Project (with Codelco):

    • Expected $900 million investment by Rio.

    • Construction to start in 3–5 years, pending environmental approvals.

    • Rio will lead all phases—design, build, operation, sales—and begin with DLE from day one.

    • A technical committee led by Rio will manage development until production, after which control shifts to a 50-50 split.

  • Altoandinos Project (with ENAMI):

    • Rio will invest $425 million initially to fund feasibility studies.

    • Partners were chosen through an independent selection process that included BYD, Eramet, Posco, and financial bidders like LG Energy and CNGR.

Market and Investment Climate

  • The entry into Chile comes as CEO Jakob Stausholm prepares to depart. Stausholm had championed Rio’s lithium expansion strategy.

  • Despite Rio’s growing stake, analysts remain cautious. RBC Capital Markets noted:

    “We have not heard from investors that they want to see further investment in lithium.”

  • Benchmark Minerals warned of Rio and Codelco overextending:

    “Too many fronts open… when justifying large investments in lithium is challenging.”

Strategic Considerations

  • Codelco will retain national oversight but allow Rio to lead on technical decisions early on.

  • DLE implementation will be closely scrutinized for scalability, efficiency, and sustainability.

  • Rio may receive an intellectual property permit in Chile if its DLE proves viable.

Outlook

Despite volatile prices and technical risk, Rio’s high-profile push in Chile signals a long-term bet on the future demand for lithium and its role in EV and energy storage markets. Its success will hinge on DLE performance and a rebound in lithium economics.

Analog Devices Forecasts Strong Sales, But Auto Segment Tariff Boost Raises Sustainability Questions

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Analog Devices (ADI) on Thursday projected third-quarter revenue of $2.75 billion (± $100 million), beating Wall Street estimates of $2.62 billion, according to LSEG data. However, investor concern over tariff-driven demand in the automotive segment led to a 5% dip in shares after the announcement.

The chipmaker cited high-single-digit “pull-in” demand from automakers looking to stockpile semiconductors ahead of U.S. tariff changes, contributing to a 24% year-on-year jump in automotive sales, which reached $849.5 million for the May quarter. Yet, Analog Devices warned that auto revenue is expected to decline sequentially in the third quarter, triggering concerns about the durability of the rebound.

“While it’s difficult to delineate what was pull-in versus normal, our estimate for pull-in upside is in the high-single digit range,” said an ADI executive during the earnings call.

Broader Trends in Analog Chip Demand

The report follows a broader industry trend, with Texas Instruments last month also forecasting above-consensus revenue, signaling a revival in analog chip demand after quarters of inventory correction. Analysts believe restocking activity is now underway.

“Inventory had been really drawn down, so now we are seeing a restocking,” said Daiwa analyst Lou Miscioscia.

Despite the strong headline numbers, Stifel analyst Tore Svanberg noted investor concern around the temporary nature of auto demand driven by tariff policy rather than organic growth.

Consumer Segment Surges

ADI also reported a 30% jump in sales in its consumer segment, fueled by a rebound in personal electronics demand. According to Canalys data, global PC shipments rose 9.4% in Q1 2025 as manufacturers accelerated deliveries ahead of expected tariff hikes.

For Q3, Analog Devices forecast adjusted earnings per share of $1.92 (± $0.10), also ahead of consensus.

Apple Targets 2026 Launch for Smart Glasses, Shelves Smartwatch Camera Plans

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Apple is reportedly planning to launch smart glasses in late 2026, according to Bloomberg News, marking a renewed effort by the tech giant to expand its AI-focused wearable product lineup.

The company will begin mass-producing prototypes with overseas suppliers at the end of 2025, the report said, citing sources familiar with the matter. Apple has not commented on the development.

This move follows mixed reception for its $3,499 Vision Pro mixed-reality headset, which has faced slow adoption due to its high price and limited artificial intelligence capabilities.

Competing in the Facewear Market

The new Apple smart glasses would position the company to directly compete with Meta’s Ray-Ban smart glasses, which have gained popularity for their integration of AI and social features. Unlike the Vision Pro, the new glasses are expected to be lighter, more affordable, and likely focused on AI-powered applications such as real-time translation, notifications, or camera assistance.

Apple Watch Camera Project Cancelled

In the same report, Bloomberg revealed Apple has shelved plans for a camera-equipped Apple Watch, which was expected to launch by 2027. The smartwatch would have included functionality to analyze its surroundings using AI and capture photos — a concept Apple has now decided to discontinue.

This reflects Apple’s shifting hardware strategy to focus on products that deliver more practical AI experiences without compromising on design, privacy, or battery life.