Step aside Pilbara Minerals: This ASX 200 mining stock is eyeing the lithium throne

Changing the lithium landscape.

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Investors with an eye on lithium will likely be familiar with Pilbara Minerals Ltd (ASX: PLS).

This Aussie miner ranks among the world's top lithium producers thanks to its flagship Pilgangoora mine in Western Australia.

In essence, Pilgangoora is one of the most strategically important deposits within the global lithium supply chain.

It boasts an estimated 33-year mine life and lies in an infrastructure-rich region of one of the premier mining jurisdictions worldwide.

Hence, it's no surprise that Pilbara Minerals stands as one of the leading lithium stocks on the ASX.

However, a new sheriff could be heading to town.

New lithium king?

ASX 200 mining titan Rio Tinto Ltd (ASX: RIO) is on track to become the world's second-largest lithium producer by 2035, according to research house Benchmark Mineral Intelligence.

Benchmark's research concluded that Rio Tinto could account for 6% of global lithium output in ten years' time, leapfrogging Pilbara Minerals with a 5% forecast.

US-listed Albemarle Corp (NYSE: ALB) is projected to top the podium with 7% of global production.

So what?

Rio Tinto is already one of the world's largest diversified mining companies, with its operations spanning 35 countries.

However, it is mainly known for the production of iron ore, copper, and aluminium products.

Its exposure to lithium has been muted… until a flurry of recent activity.

All guns blazing

Late last year, Rio Tinto unveiled plans to invest US$2.5 billion to expand its Rincon lithium project in Argentina – the group's first commercial scale lithium operation.

In March this year, it secured several lithium mines in Canada, Argentina, and Australia after completing the acquisition of Arcadium Lithium (NYSE: ALTM) in a US$6.7 billion deal.

Most recently, in May, Rio Tinto acquired a 49.99% stake in a joint venture with Chilean state miner Codelco to develop a major lithium project.

It will invest US$900 million to drive this Chilean project towards production.

The bigger picture

In recent years, lithium has been hailed as a metal of the future thanks to its role in lithium-ion batteries that power electric vehicles (EVs) and modern-day consumer electronics.

Yet, it has remained overlooked by the world's largest diversified mining companies.

From BHP Group Ltd (ASX: BHP) to Glencore PLC (LSE: GLEN) and Brazil's Vale SA (NYSE: VALE), the leading global miners don't operate any lithium-producing assets.

Until now, that is, with Rio Tinto raising the stakes in the battery metals space and signalling a firm belief in lithium's long-term potential.

Motley Fool contributor Bart Bogacz has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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