Rio Tinto Kept at Buy as BofA Notes Rapidly Growing Demand for Lithium

10:16 AM EST, 12/09/2025 (MT Newswires) -- BofA Global Research said Monday that Rio Tinto (RIO.L) highlighted a high growth opportunity in its lithium business amid rapidly increasing demand at a recent event in Argentina, prompting the research firm to reiterate its buy rating. The mining giant expects the lithium market to see a compound annual growth rate of 13% through 2035 and plans to invest a "significant" amount of capital in its lithium business over time. "[Lithium] demand is growing rapidly at c.+20-30%/year driven by increased penetration of electric vehicles (EVs) and more recently, growth in stationary grid scale batteries (BESS). Post Arcadium, RIO saw optionality in its combined lithium business to c. 370 ktpa which would make it the second largest global lithium producer. Against the 2025 market this would be 24%, relative to the 2030 market this would be c. 14%," analysts wrote. "We believe that the new Chilean JVs could easily add 100-150 ktpa to this total to an eventual capacity of 470-520 ktpa." The research firm also highlighted the company's copper and aluminum leverage, growth optionality and robust free cash flow as positive factors. The stock's price target stands at 54.76 pounds sterling.