Rio Tinto will invest $2.5 billion to increase production capacity at its Argentina lithium project, it said on Thursday, as it seeks to cement its position as one of the world's biggest miners of the battery metal.

Rio Tinto CEO Jakob Stausholm was "devastated" over the news of sexual harassment lawsuits against the company, he told Reuters on Thursday, while also expressing optimism for a potential lithium tie-up in Chile with State-owned Codelco.

Rio Tinto Group RIO announced that it would invest $2.5 billion in its first commercial-scale lithium operation, the Rincon project, in Argentina. This move is in sync with Rio Tinto’s goal to build a world-class battery material portfolio.

Rio Tinto has approved an investment of $2.5bn (£1.98bn) to expand the Rincon project in Argentina, marking the company's first commercial-scale lithium operation. This investment aligns with its strategy to develop a robust battery materials portfolio.

The mining giant is betting big on lithium. Here's what it has announced. The post Rio Tinto share price falls despite $3.9b lithium update appeared first on The Motley Fool Australia.