Rio Tinto focuses on lithium growth, shares in analyst hold zone

By Thomas Klein, Operations & Strategy desk. Reviewed prior to publication on 2026-06-25, 19:10.

Rio Tinto (GB0007188757) continues to highlight lithium as a strategic growth pillar alongside its dominant iron ore business, while its shares trade on the London Stock Exchange in the FTSE 100 basic materials cohort. Recent commentary from management and analysts points to robust cash generation but a broadly neutral stance on the stock.

Management highlights lithium expansion

Rio Tinto has outlined plans to significantly expand its lithium business, aiming to triple lithium output by around fiscal 2028 according to recent investor communications and market reports. The group positions lithium as its fastest-growing division, complementing core commodities such as iron ore, aluminum and copper.

Executives have stressed that demand for lithium will increasingly come not only from electric vehicles but also from stationary battery storage, which could help smooth cyclical swings in the auto market. This dovetails with Rio Tinto's existing exposure to the energy transition via copper and high-grade iron ore used in more efficient steelmaking.

Iron ore remains the earnings engine

Despite the strategic focus on lithium, iron ore from the Pilbara region in Western Australia remains Rio Tinto's primary profit contributor, supplying major steel producers in Asia including China. The company also mines bauxite and produces aluminum, giving it a diversified bulk and base-metals portfolio.

Rio Tinto has been testing electric haul trucks with Caterpillar in the Pilbara, in cooperation with peers such as BHP, as part of its drive to cut diesel consumption and emissions in iron ore operations. These trials are designed to support decarbonization goals while managing operating costs in a competitive global iron ore market.

Analysts stay cautious on valuation

On the London market, Rio Tinto shares recently changed hands around 7,178 pence, giving the group a market capitalization of roughly £116 to £117 billion and placing it among the largest FTSE 100 miners. The stock trades on a mid-teens price-earnings multiple, reflecting both cyclical risk and its strong balance sheet.

Analysts aggregated by MarketBeat and other platforms generally rate the stock at Hold, with a consensus price target close to current trading levels, suggesting limited near-term upside. The implied total return is supported primarily by the dividend, with yields indicated at around 4 percent depending on the reference market and payout assumptions.

The business behind the stock

Rio Tinto generates most of its revenue from iron ore, followed by aluminum, copper and a Minerals division that includes titanium dioxide, borates and now lithium projects. The company operates in more than 30 countries, with key assets in Australia, Canada and the Americas.

Where the stock trades today

The Rio Tinto shares (GB0007188757) most actively trade in London under the ticker RIO on the London Stock Exchange, with parallel listings in New York and Sydney; on 2026-06-25 at 17:00 they were indicated at roughly 7,180 pence in London trading.

This article is for informational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any financial instruments. Historical data and analyst assessments are not a reliable indicator of future performance. Investors should conduct their own research and, where appropriate, consult a qualified financial advisor.