Rio Tinto (RIO) said Monday that it signed an agreement to form a joint venture with National Copper Corporation of Chile that will operate a high-grade lithium project.

Rio said it will own a nearly 50% stake in Salar de Maricunga and invest $350 million in initial funding for additional studies and resource analysis, $500 million in construction costs once a decision is made to go ahead with the project, followed by another $50 million if the joint venture delivers its first lithium by the end of 2030.

The deal is expected to close by the end of Q1 next year, subject to regulatory approvals and other conditions, the company said.

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