ENGIE has officially brought its Assú Sol photovoltaic complex into full commercial operation. The French utility secured final approval from Brazilian authorities on February 13, 2026, after completing construction in December 2025. With a total investment of BRL 3.3 billion, the project now stands as ENGIE’s largest operational solar asset worldwide.

Located in Rio Grande do Norte in northeast Brazil, Assú Sol has an installed capacity of 895 MWp. The complex spans 2,344 hectares and consists of 16 solar plants. At full output, it can generate enough electricity to meet the annual demand of roughly 850,000 people.

• In 2025, Brazil added 7.4 GW of new large-scale electricity generation capacity, driven primarily by over 2.81 GW of solar PV, according to the energy regulator Agência Nacional de Energia Elétrica (ANEEL).

• In August 2025, ABSOLAR reported Brazil’s solar capacity hit 60 GW and forecasted strong distributed generation growth through 2030.

By January 1, 2026, the country’s total large-scale power generation capacity reached 215.9 GW, with renewables accounting for 84.6% of the mix. ANEEL projects a 23.4% increase in renewable capacity in 2026, equivalent to an additional 9.14 GW.

However, while the scale is impressive, the project also reflects a deeper shift underway in Brazil’s renewable energy market.

Assú Sol Delivers at Scale: Advanced Tech Powers Brazil’s Largest Solar Plant

ENGIE completed the project over 30 months, keeping it on schedule and within budget. More than 4,500 direct jobs were created during construction. The development required over 1.5 million solar modules, extensive cabling, and new internal road infrastructure.

Importantly, the company adopted advanced construction technologies. Drone-based aerial mapping improved site planning. Automated graders linked to 3D models enhanced precision. In addition, ENGIE deployed Brazil’s first dedicated automatic pile-driving machine for a solar project.

As a result, execution was faster, safer, and more efficient. Assú Sol demonstrates that large-scale renewables can be delivered with industrial discipline. Yet commissioning marked only the beginning of a more complex challenge.

Assú Sol photovoltaic complex

Curtailment Pressures Test Solar Profitability

Despite reaching full operations, Assú Sol faces curtailment — a structural issue affecting Brazil’s clean energy sector since 2023. Curtailment occurs when renewable plants must reduce output because the grid cannot absorb all available electricity.

Brazil has added wind and solar capacity at record speed. At the same time, electricity demand has grown slowly. Distributed generation, especially rooftop solar, has also expanded rapidly. Consequently, supply often exceeds transmission capacity and real-time demand.

According to Reuters, ENGIE’s Brazil country manager Eduardo Sattamini confirmed that Assú Sol’s production has already been curtailed to balance the grid. Although specific volumes were not disclosed, the impact is material enough to prompt strategic adjustments.

In other words, renewable abundance does not automatically translate into revenue. Infrastructure constraints now shape project economics as much as generation capacity does.

How ENGIE Plans to Use Storage and Bitcoin

Reuters further revealed that to address this imbalance, ENGIE is evaluating two parallel strategies: battery storage and localized demand solutions such as bitcoin mining data centers.

Battery storage provides the most direct fix. By storing excess midday solar output and discharging it during peak demand hours, batteries reduce curtailment and improve grid stability. They also open access to ancillary service markets, strengthening revenue streams.

However, ENGIE is also studying a more unconventional model — using surplus electricity to power bitcoin mining operations. At first glance, the combination may seem unusual. Yet, from an energy economics perspective, it offers several compelling advantages.

Solar farms often produce maximum output during midday, precisely when grid demand can soften. Instead of shutting down generation, operators can redirect excess electricity to mining operations that can scale consumption up or down in real time.

This model delivers multiple strategic benefits.

• Lower carbon intensity: Solar-powered mining sharply reduces emissions compared to fossil-fuel-based operations, helping reposition crypto infrastructure within a cleaner energy framework.

• Flexible demand response: Mining facilities can quickly ramp power usage up or down, absorbing excess electricity during peak solar hours and easing pressure during grid stress.

• Stable long-term energy costs: Solar generation offers predictable operating expenses after initial capital deployment, protecting operators from volatile power markets.

• Improved asset utilization: Co-locating data centers with large solar plants maximizes land use and monetizes electricity that might otherwise be curtailed.

• Diversified revenue streams: Developers gain an additional income channel beyond wholesale power sales, strengthening overall project economics.

Of course, integration comes with challenges. Both solar infrastructure and mining facilities require significant upfront investment. Moreover, energy supply must remain balanced to avoid operational disruptions. Smart-grid systems and, ideally, battery storage will play a critical role in stabilizing performance.

Sattamini made clear that such initiatives would take time to implement. Nonetheless, the strategy signals an evolution in renewable business models — from pure generation toward integrated energy ecosystems.

Community Development and Long-Term Strategy

The company has also invested in the Assú region’s social infrastructure. It supported the construction of a school, a health center, and sports facilities. It improved access to water and provided agricultural equipment to local communities. Such initiatives enhance local acceptance and reinforce the long-term sustainability of the project.

ENGIE’s Renewable and Storage Capacity Goal

Looking ahead, it aims to reach 95 GW of renewable and storage capacity globally by 2030. More than 80% of its planned capital expenditure aligns with the European Taxonomy framework, focusing on low-carbon generation, infrastructure modernization, green gas, and storage technologies.

The company currently operates 15.7 GW of fully renewable installed capacity across hydropower, wind, and solar assets. It also manages 3,200 kilometers of transmission lines and 22 substations.

Some significant achievements include:

• In late 2025, ENGIE commissioned the Serra do Assuruá wind complex in Bahia, adding 846 MW of onshore wind capacity.
• Meanwhile, the Asa Branca transmission project continues to expand grid infrastructure across several states, with more than 1,000 kilometers planned upon completion.
• Another initiative, the Graúna transmission project, will further strengthen interconnections in southern Brazil.

These investments are critical. Without stronger transmission networks, renewable curtailment will persist. Therefore, grid expansion and flexibility solutions must advance alongside generation growth.

As renewable penetration rises, profitability depends not only on installed megawatts but also on flexibility, storage, and innovative demand-side solutions. In that context, combining solar power with storage or even bitcoin mining may redefine how excess clean energy is valued.

And Assú Sol is part of ENGIE’s broader renewable expansion in Brazil, setting an example for renewable markets facing maturity challenges.

• READ MORE: Sungrow Powers ENGIE’s €290M Vilvoorde Battery Park, Europe’s Largest of Its Kind 

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Disseminated on behalf of Surge Battery Metals Inc.

Grade matters because it affects how much lithium a project can produce and how costly it is to operate. Higher grades generally mean more lithium can be recovered with lower costs. This matters for projects that want to compete in the fast‑growing electric vehicle (EV) and energy storage markets.

Let’s explore why grade is essential for lithium clay projects and learn how it affects economics, operations, and investor interest. More notably, we highlight how Surge Battery Metals’ Nevada North Lithium Project (NNLP) stands out in this context. 

What “Grade” Means in Lithium Projects

In mining, “grade” refers to how much lithium is present in a deposit. It is usually reported in parts per million (ppm) or as lithium carbonate equivalent (LCE). A higher grade means there is more lithium per tonne of rock.

For lithium clay, grades can vary widely. Some clay deposits have grades below 1,000 ppm. Others reach several thousand ppm. The higher the grade, the more lithium metal is available to extract.

U.S. lithium clay peers usually range from 800 to 2,540 ppm Li. Some areas are lower, at 120 to 766 ppm, like American Lithium’s Tonopah claims. Others can reach 1,690 to 2,900 ppm in drilling. Common cutoffs start at 1,000–1,250 ppm for economic viability, far above the <500 ppm in some global clays like Australia’s Kaolin resources.

Grade affects several key project factors:

• Revenue potential – Higher grade means more lithium output per tonne of material moved.
• Cost efficiency – Projects with a higher grade may spend less on mining and processing per unit of lithium produced.
• Product quality – Higher-grade feedstock can result in higher‑purity lithium products, which are valuable in battery markets. 

Investors and developers pay close attention to grade because it is a strong indicator of future project performance.

• SEE LIVE LITHIUM PRICES HERE

Why Grade Matters More Than Ever

The global lithium market is changing fast. EV production is growing quickly. Energy storage systems are expanding. Demand for lithium is outpacing supply in many markets. This puts pressure on producers and developers to find the most competitive resources.

In this environment, grade has become a key differentiator among lithium clay projects. Several market trends explain why grade now matters more than ever:

• Rising Demand for Battery‑Grade Lithium

Battery manufacturers require consistent, high‑purity lithium feedstock. Higher-grade deposits can deliver more lithium for refining into battery materials. They can also reduce the amount of waste material that needs to be processed. 

Global lithium demand is forecast to reach 2.4–3.1 Mt LCE by 2030 (from ~0.7 Mt in 2022), with batteries driving >90% growth. High-grade clays minimize waste in refining to meet this.

• Cost Pressures in Battery Supply Chains

Global competition in battery manufacturing pushes producers to lower costs. Projects with higher grades can reduce lithium production costs. This improves project economics and makes supply chains more resilient.

Higher grades cut opex by reducing tonnage processed. For instance, >3,000 ppm clays enable <US$6,000/t LCE vs. lower-grade brine equivalents >US$10,000/t.

• Shift Toward Domestic Supply Security

Countries like the United States are prioritizing domestic lithium production. This is part of a broader energy and industrial policy. 

U.S. holds ~115 Mt lithium resources, per USGS 2025 data, up from 98 Mt in 2024. However, production is <1% global. IRA mandates 80% domestic or allied sourcing by 2027, favoring high-grade projects for faster permitting/offtakes.

Projects with strong grades are more likely to secure investment, permit approvals, and supply agreements. They offer clearer pathways to sustainable production.

In this landscape, projects with both good size and high grade stand out. They can produce more lithium with fewer inputs. They also attract stronger interest from investors and manufacturers looking for reliable sources of battery metals.

Nevada North: High-Grade Lithium in Action

Among lithium clay projects in the United States, Surge Battery Metals’ (TSX-V: NILI | OTCQX: NILIF) Nevada North Lithium Project (NNLP) is a standout example of why grade matters. NNLP hosts one of the highest‑grade lithium clay resources in the country. It also shows strong potential for expansion and future development.

According to the 2024 resource estimate, NNLP now has an inferred resource of 11.24 million tonnes (Mt) of LCE at an average grade of 3,010 ppm lithium using a 1,250 ppm cutoff. This represents a significant increase in both size and quality compared to earlier estimates. It also positions NNLP as one of the highest‑grade lithium clay deposits in the United States.

Within that total resource, a core portion of 7.43 Mt of LCE grades 3,843 ppm lithium at a higher cutoff level. Higher cutoffs generally indicate more concentrated lithium zones, which are especially valuable for economic studies and future mine planning.

• SEE MORE: Nevada Lithium Hub: Why Surge Battery Metals Holds the Key to U.S. EV Independence

NNLP’s strong grades have grown progressively through drilling campaigns. In 2023, early drilling returned exceptionally high lithium values, including intervals that ranged up to 8,070 ppm lithium in specific clay horizons. These high grades were encountered close to the surface, which could simplify mining logistics.

Surge recently reinforced this grade advantage with new drilling results at NNLP. The company reported a 31-meter intercept grading 4,196 ppm lithium from surface in a 640-meter step-out hole to the southeast. This intercept is nearly 40% higher than the project’s current average grade of 3,010 ppm lithium. 

The 640-meter extension also confirms that high-grade mineralization continues well beyond the existing resource boundary. Near-surface grades above 4,000 ppm further support low stripping ratios and efficient future development.

Mr. Greg Reimer, CEO, President, and Director of Surge, said,

“These drill holes materially enhance the scale of the Nevada North Lithium Project. Intersecting nearly 4,200 ppm lithium in a 640‑meter step-out to the southeast in NNL‑037 is a significant achievement. Not only is the system continuous, but we are encountering some of our highest grades at the very edges of the known footprint. It is increasingly clear that we have only begun to tap the true potential size of this premier lithium asset.”

NNLP’s resource is also shallow and laterally extensive. The deposit extends over kilometers of strike and remains open for expansion in several directions. This suggests that further drilling could add more tonnes or improve the average grade even further.

These characteristics give NNLP a competitive advantage. High grades can translate into lower production costs per tonne of lithium. They can also support strong economic outcomes as the project progresses toward prefeasibility and eventual development.

Economics Speak for Itself

High lithium grades help improve the economic profile of a project. For developers like Surge Battery Metals, this means stronger project metrics in studies such as preliminary economic assessments (PEAs).

In the case of NNLP, the high-grade and large resource support robust economic results. A recent PEA shows an after‑tax net present value (NPV) of US$9.21 billion and an internal rate of return (IRR) of 22.8% at a lithium price of US$24,000 per tonne LCE. These figures reflect the project’s ability to generate strong cash flows over its lifespan.

High grade also means that a project can produce significant lithium volumes without requiring excessively large mining operations. This can reduce environmental footprint, capital cost, and permitting complexity. The Nevada North deposit’s grades help make future processing and extraction more efficient.

For investors, grade is a key signal of potential project strength. Projects with grades well above the global average often trade at premium valuations relative to peers with lower grades. 

NNLP’s resource quality has attracted notable attention from analysts and market observers because it combines a strong grade with domestic location in a mining‑friendly jurisdiction.

The Strategic Edge in a Competitive Market

The lithium market will continue to evolve over the next decade. Global EV adoption and energy storage deployment are expected to drive demand for lithium to new highs. This will require reliable supply sources that can deliver consistent volume and quality.

In this context, grade will remain a core metric for comparing lithium clay projects. Deposits with higher grades are more likely to attract the capital, partnerships, and offtake agreements needed to advance through development phases. They also offer clearer economic paths compared to lower‑grade alternatives.

For Surge Battery Metals and its Nevada North Project, high grade is more than a number on a chart. It is a core advantage that differentiates NNLP from many peer projects. It supports strong resource economics, efficient processing potential, and a compelling narrative for domestic supply chain relevance in electric vehicle and battery markets.

As global competition for lithium intensifies, projects with both size and quality will stand out. NNLP’s high‑grade resource positions it as a leading example of how grade can influence outcomes in modern lithium clay development.

• READ MORE: From Resource to Battery-Grade: How NILI Aims to Deliver 99% Purity Lithium

DISCLAIMER 

New Era Publishing Inc. and/or CarbonCredits.com (“We” or “Us”) are not securities dealers or brokers, investment advisers, or financial advisers, and you should not rely on the information herein as investment advice. Surge Battery Metals Inc. (“Company”) made a one-time payment of $75,000 to provide marketing services for a term of three months. None of the owners, members, directors, or employees of New Era Publishing Inc. and/or CarbonCredits.com currently hold, or have any beneficial ownership in, any shares, stocks, or options of the companies mentioned.

This article is informational only and is solely for use by prospective investors in determining whether to seek additional information. It does not constitute an offer to sell or a solicitation of an offer to buy any securities. Examples that we provide of share price increases pertaining to a particular issuer from one referenced date to another represent arbitrarily chosen time periods and are no indication whatsoever of future stock prices for that issuer and are of no predictive value.

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It is our policy that information contained in this profile was provided by the company, extracted from SEDAR+ and SEC filings, company websites, and other publicly available sources. We believe the sources and information are accurate and reliable but we cannot guarantee them.

CAUTIONARY STATEMENT AND FORWARD-LOOKING INFORMATION

Certain statements contained in this news release may constitute “forward-looking information” within the meaning of applicable securities laws. Forward-looking information generally can be identified by words such as “anticipate,” “expect,” “estimate,” “forecast,” “plan,” and similar expressions suggesting future outcomes or events. Forward-looking information is based on current expectations of management; however, it is subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those anticipated.

These factors include, without limitation, statements relating to the Company’s exploration and development plans, the potential of its mineral projects, financing activities, regulatory approvals, market conditions, and future objectives. Forward-looking information involves numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking information. These risks and uncertainties include, among other things, market volatility, the state of financial markets for the Company’s securities, fluctuations in commodity prices, operational challenges, and changes in business plans.

Forward-looking information is based on several key expectations and assumptions, including, without limitation, that the Company will continue with its stated business objectives and will be able to raise additional capital as required. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, or intended.

There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially. Accordingly, readers should not place undue reliance on forward-looking information. Additional information about risks and uncertainties is contained in the Company’s management’s discussion and analysis and annual information form for the year ended December 31, 2025, copies of which are available on SEDAR+ at www.sedarplus.ca.

The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. Forward-looking information reflects management’s current beliefs and is based on information currently available to the Company. The forward-looking information is made as of the date of this news release, and the Company assumes no obligation to update or revise such information to reflect new events or circumstances except as may be required by applicable law.

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Verra approved the first carbon credits under its new digital monitoring, reporting, and verification (DMRV) pilot. This move signals a major shift in how carbon credits are issued. Instead of waiting for annual verification cycles, projects can now receive high-frequency issuances, including monthly or bi-monthly approvals. As a result, the carbon market may become faster, more transparent, and more data-driven.

The first credits under this pilot came from the Foumbouni-Mitsamiouli solar farm project (Verra Project 3788) in the Union of Comoros.

Foumbouni-Mitsamiouli Solar Project Leads Verra’s Digital Carbon Shift

In addition, the project integrates 1 MW/2 MWh of battery storage. This storage system allows the solar plants to operate in hybrid mode and islanding mode. In simple terms, the plants can stabilize the grid and export clean power even when grid conditions fluctuate.

This development marked a turning point for the island’s energy system. Before the solar farms came online, the national utility SONELEC relied almost entirely on diesel-fired power plants. Electricity access remained below 60%, and supply was often unreliable. Diesel imports were costly and exposed the country to fuel price volatility.

Now, each plant generates around 12.7 gigawatt-hours (GWh) of electricity per year. On average, the bundled project reduces 9,384 tons of carbon dioxide equivalent annually. Beyond emissions cuts, the project strengthens national energy security and creates local employment opportunities.

Most importantly, it replaces fossil fuel-based electricity with renewable solar power. For a country that depended heavily on diesel generation, this shift is significant.

SustainCERT acted as the validation and verification body (VVB). It conducted a fully digital verification process. Project developers submitted monitoring data electronically, and the verification process took place entirely online. This marked the first successful digital verification under Verra’s DMRV pilot.

Verra Project Hub Powers a New Digital Era

Verra launched the DMRV pilot as part of a broader plan to digitize its entire project cycle. The organization aims to improve efficiency, reliability, speed, and transparency across the voluntary carbon market.

At the center of this transformation is the Verra Project Hub. This online platform serves as a comprehensive tool for creating and managing projects under Verra’s standards programs. It allows project proponents to submit validation, monitoring, and verification documents digitally. It also integrates directly with the Verra Registry, enabling faster issuance once approvals are granted.

The platform simplifies several steps in the project lifecycle. For example:

• It enables the digital submission of monitoring data.
• It automates calculations of emission reductions and removals using built-in engines aligned with approved methodologies.
• It allows VVBs to access project records and submit verification reports directly.
• It tracks milestones, deliverables, and reviews progress in real time.

As a result, stakeholders can collaborate more efficiently. Communication between project developers, VVBs, and Verra becomes smoother. At the same time, the system enhances transparency because documentation and data are centrally managed and traceable.

Verra is also digitalizing its most widely used methodologies. Templates collect all required project information in a structured format. A built-in calculation engine then computes emission reductions or removals for a given crediting period. This reduces human error and improves consistency across projects.

Digital Project Submission Tool for QC

In parallel, the Digital Project Submission Tool strengthens quality control. It checks data consistency and completeness using automated validation logic. If data is missing or incorrect, the system flags it immediately. Corrections can be made quickly, and all changes are logged for traceability. This improves auditability and builds trust among credit buyers.

Safeguards and Phased Credit Issuance

Under the DMRV pilot, Verra introduced a phased issuance structure to manage risks.

If a DMRV-based verification request for a high-frequency issuance installment is approved, the project proponent may request 80% of the approved credits. Verra withholds the remaining 20% as a safeguard during the pilot phase.

After one year of high-frequency issuances, the project must undergo a full traditional verification. This broader review covers additional elements such as safeguards, stakeholder engagement, and other non-digitized parameters. If Verra approves this non-DMRV-based verification request, the proponent can request issuance of the remaining 20%.

This structure balances innovation with risk management. It allows projects to benefit from faster cash flow while maintaining environmental integrity.

Verra is currently piloting this digital process for other project types as well. These include carbon capture and storage (CCS) activities and clean cookstove projects. If successful, the DMRV approach could expand across multiple sectors.

LATEST:

• Verra Greenlights Record 3 Million Soil Carbon Credits From Mexico Grasslands
• Why South Africa’s Verra-Certified Grassland Carbon Credits Matter for Voluntary Markets 

Carbon Market Supply and Demand Shift in 2025

While Verra pushes digital innovation, the broader carbon market also experienced notable changes in 2025.

As of December 31, 2025, more than 10,200 projects were registered across 18 major carbon credit registries tracked by MSCI. During the year, these projects issued 294 million tonnes of carbon dioxide equivalent (MtCO2e). Since the Paris Agreement was signed in late 2016, cumulative issuances have surpassed 2.6 billion credits.

Also, according to Sylvera, new issuances declined to roughly 270 million tonnes in 2025. This marked the lowest annual issuance level since 2020.

On the supply side, renewable energy credits saw the sharpest drop. For years, market participants debated their additionality. Many buyers increasingly viewed grid-connected renewable projects as having limited incremental climate impact, especially in markets where renewables are already competitive. As confidence weakened, fewer new renewable credits entered the market.

Nature-based projects still dominate overall volumes. Forestry and land-use projects remain the largest sources of issued and retired credits. However, even within this segment, the mix is evolving. Buyers now focus more on quality, permanence, and robust monitoring systems.

On the demand side, retirements fell slightly in 2025. Yet this does not necessarily signal declining corporate interest. The number of buyers remained relatively stable. What changed was purchasing behavior.

Companies became more selective. They scrutinized methodologies, co-benefits, and verification standards more closely. In many cases, they shifted toward higher-integrity credits, even if volumes were lower. At the same time, price sensitivity increased in some segments.

Therefore, the market is not shrinking. Instead, it is maturing. Buyers demand stronger transparency, clearer impact, and better data.

Digitalization Could Restore Confidence

In this context, Verra’s DMRV initiative arrives at a critical moment. As the voluntary carbon market faces scrutiny over quality and additionality, digital monitoring and automated calculations can improve credibility.

High-frequency issuance also benefits project developers. Faster approvals improve cash flow and reduce administrative delays. Meanwhile, automated systems reduce manual paperwork and the risk of calculation errors.

For buyers, digital verification enhances confidence. Real-time data submission and traceable logs create a clearer audit trail. Over time, this may help rebuild trust in segments where credibility has weakened.

Ultimately, the Foumbouni-Mitsamiouli solar project represents more than just a renewable energy investment. It marks the beginning of a new digital chapter for carbon markets. If Verra successfully scales DMRV across sectors, the VCM could become more transparent, efficient, and resilient in the years ahead.

• READ MORE: The Carbon Credit Market in 2025 is A Turning Point: What Comes Next for 2026 and Beyond?

The post Verra’s First DMRV Solar Project Pushes Carbon Credits into the Digital Era appeared first on Carbon Credits.

Rio Tinto delivered a mixed but resilient performance in the full-year 2025. While weaker iron ore prices weighed on profits, strong copper growth and disciplined cost control helped the mining giant keep earnings stable and maintain its dividend.

The world’s largest iron ore producer reported underlying earnings of $10.87 billion for the year ended December 31, unchanged from 2024. However, net profit fell 14% to $9.97 billion, compared to $11.55 billion a year earlier.

Despite the profit decline, Rio Tinto kept its shareholder payout steady. It declared an ordinary dividend of $6.5 billion, maintaining a 60% payout ratio. This marked the tenth straight year the company paid at the top end of its target range.

Iron Ore Softens, Copper and Aluminium Step Up

Lower iron ore prices hurt earnings. As the backbone of Rio Tinto’s business, iron ore remains critical. However, copper and aluminium delivered strong support.

Copper production rose 11% year over year. The key driver was the ramp-up of the Oyu Tolgoi underground project in Mongolia, where output surged 61%. This project is now complete and will play a major role in future copper growth.

Aluminium also performed well across the value chain. The company achieved record annual bauxite production of 62.4 million tonnes. As a result of higher volumes and better productivity, Rio Tinto reduced operating unit costs by 5% in real terms during 2025.

Operational cash flow strengthened. Net cash from operating activities rose 8% to $16.8 billion. Meanwhile, underlying EBITDA climbed 9% to $25.4 billion. These gains reflected operational discipline and tighter cost management.

Looking ahead, the company aims to deliver a 4% compound annual unit cost improvement through 2030. It also expects productivity initiatives to generate $650 million in annual benefits by early 2026.

Big Projects Drive Future Growth

Rio Tinto made significant progress across its global project pipeline in 2025. The major milestones are explained below:

Simandou Iron Ore Project

The Simandou project in Guinea reached a major milestone. The company shipped its first high-grade iron ore in December. This project is expected to strengthen long-term supply and improve product quality.

Pilbara Replacement Mines

In Western Australia’s Pilbara region, the Western Range replacement mine opened on time and on budget. Additionally, construction began at three more brownfield iron ore mines. Four of the five major replacement projects are now either ramping up or under construction.

Copper Expansion

The Oyu Tolgoi underground development is complete. Rio Tinto also achieved first production of Nuton copper at the Johnson Camp mine. The company remains on track to deliver 3% compound annual growth in copper-equivalent production through 2030.

Lithium Growth

In March, Rio Tinto closed its acquisition of Arcadium ahead of schedule. The focus now shifts to advancing lithium projects in Argentina and Canada. The company targets 200,000 tonnes per year of lithium carbonate equivalent capacity by 2028.

Together, these projects strengthen Rio Tinto’s position in future-facing commodities like copper and lithium, which are essential for electrification and the energy transition.

Strong Balance Sheet and Capital Discipline

Despite profits falling, Rio Tinto’s financial position remains solid. Its strong cash flow supports consistent dividends and future investment. The company plans to unlock between $5 billion and $10 billion from its asset base. It is currently reviewing options for its borates and titanium dioxide (TiO₂) businesses and considering infrastructure monetization.

Management also streamlined operations. It reduced its structure from four product groups to three core divisions, i.e., iron ore, aluminium & lithium, and copper

Additionally, the company reduced contractor numbers and discretionary spending. It also placed the Jadar project into care and maintenance and stopped non-core studies. These steps sharpened its focus on value-generating assets.

• ALSO SEE: Copper Drives BHP’s $6.2B Profit Surge in FY26 Half-Year Results

Climate Action: Progress with Challenges

Sustainability remains an important part of Rio Tinto’s long-term strategy. The company spent $612 million on decarbonization initiatives in 2025, up from $589 million in 2024

In 2025:

• Gross Scope 1 and 2 emissions were 31.5 million tonnes of CO₂ equivalent, down 14% from the 2018 baseline of 36.7 million tonnes.
• Scope 3 emissions, which include customer use of products, reached 575.7 million tonnes of CO₂ equivalent. These emissions represent the largest share of its climate footprint. After applying high-quality carbon offsets, net emissions were 17% below baseline.

However, progress slowed compared to prior years. Emissions fell by just 0.2 million tonnes from 2024 levels. Increased production in iron ore and copper partly offset reductions.

Renewable Energy Contracts and Carbon Credits

The mining giant relies on renewable energy contracts and renewable diesel use, especially at its Kennecott site. It also retired about 1.01 million Australian Carbon Credit Units (ACCUs) to meet regulatory requirements.

Still, the path to its 2030 target of a 50% reduction in Scope 1 and 2 emissions depends on third-party renewable projects and successful commercial agreements. These factors remain outside the company’s direct control.

Around 7% of its electricity came from renewable sources, slightly lower than 78% in 2024 due to accounting adjustments in reported figures.

Environmental and Water Management

Air quality indicators such as NOx, SOx, and fluoride levels remained relatively stable over five years. However, PM10 levels increased slightly over the past three years. To reduce emissions at the source, Rio Tinto continues to upgrade equipment with best-available technologies. It also expands air monitoring networks around its operations.

Water management improved in 2025. Total operational water withdrawals declined to 1,147 gigalitres, down from 1,250 gigalitres in 2024. Freshwater withdrawals also fell slightly to 386 gigalitres.

Water recycling increased to 374 gigalitres, showing better reuse practices. Meanwhile, total water discharges dropped to 626 gigalitres.

The company advanced several community-focused water initiatives, including implementing a new water strategy at QIT Madagascar Minerals. It also increased transparency by publishing detailed water performance data.

The Bigger Picture

Overall, Rio Tinto delivered steady underlying earnings in a challenging pricing environment. Iron ore weakness pressured profits, yet copper and aluminium provided strong support.

At the same time, disciplined capital allocation, operational efficiency, and large-scale project execution strengthened its long-term outlook.

Looking forward, growth will rely heavily on copper and lithium. These metals sit at the heart of global electrification and decarbonization trends. If Rio Tinto delivers on its cost improvements and project milestones, margins and cash flow could improve further.

However, climate targets remain ambitious. Achieving deeper emissions cuts will require faster renewable energy deployment and broader collaboration across its value chain.

In short, 2025 showed resilience rather than rapid growth. Rio Tinto balanced shareholder returns, project expansion, and sustainability progress. Now, its future depends on executing its copper-led strategy while navigating commodity cycles and climate commitments.

• LATEST: Rio Tinto and Amazon Web Services (AWS) Join Forces to Supply Low-Carbon Copper for U.S. Data Centers

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