Clean TeQ Water (ASX: CNQ) Announces Landmark US$12.5M Contract with Rio Tinto

Clean TeQ Water Limited (ASX: CNQ) has released an important investor update, announcing it has secured a landmark US$12.5 million contract with a Rio Tinto subsidiary for the Rincon Lithium Project in Argentina. This Clean TeQ Water Rio Tinto contract, detailed in a recent ASX announcement, represents one of the company’s largest agreements to date and marks its first major entry into the South American lithium triangle. The agreement positions the Australian technology firm as a serious contender in the global lithium processing sector. The deal involves engineering design, procurement, and supply of a lithium concentrate softening plant using Clean TeQ’s proprietary CLEAN-IX Moving Bed Ion Exchange (MBIX) technology, with delivery scheduled over a staged three-year period.

What is the Significance of the Clean TeQ Water Rio Tinto Contract?

This substantial win validates Clean TeQ’s MBIX technology platform at the highest industry level. The agreement, worth approximately A$19.2 million, establishes Clean TeQ as a global player in the lithium refining and direct lithium extraction (DLE) sectors. Rio Tinto’s selection process, involving rigorous technical and commercial evaluation, provides considerable credibility for Clean TeQ’s technology.

Furthermore, the contract opens doors to one of the world’s most important lithium-producing regions. The South American lithium triangle, which includes Argentina, Bolivia, and Chile, contains approximately 60% of global lithium reserves. Clean TeQ’s entry into this market through a tier-one mining partner positions the company advantageously for future contract opportunities as lithium demand accelerates.

Clean TeQ CEO Peter Voigt commented on the achievement: “We are proud to be selected by Rio Tinto to support such an important lithium project. This contract is one of our largest and is our first in the South American lithium triangle. The award is a strong endorsement of our MBIX technology as a best-in-class solution.”

Key Contract Details:

• Contract Value: US$12.5M (~A$19.2M)
• Client: Rigi – Rincon Mining Pty Limited (a wholly owned Rio Tinto subsidiary)
• Project Location: Salta Province, Argentina
• Delivery Timeline: 3 years, staged implementation
• Technology: CLEAN-IX MBIX for lithium concentrate softening

The contract operates under standard design and supply terms, including a commercially balanced termination for convenience clause that requires at least fifteen working days’ written notice. No terms are considered unusual for an agreement of this nature.

How Does Clean TeQ Water’s MBIX Technology Improve Lithium Processing Efficiency?

Moving Bed Ion Exchange (MBIX) is Clean TeQ’s proprietary technology platform, engineered to deliver continuous counter-current operation for superior efficiency in water and metals processing. Unlike conventional fixed-bed systems, Clean TeQ Water technology operates with moving resin beds, which enables higher stage efficiency and improved resin utilisation.

The advantages of MBIX include lower water consumption, a critical factor for sustainable lithium processing in arid regions. Additionally, the technology leads to reduced reagent consumption, improving cost-effectiveness whilst generating more concentrated valuable product streams that enhance recovery rates. Markedly lower losses of target ions compared to traditional approaches make MBIX a compelling option for lithium extraction operations.

MBIX maintains continuous operation without the extended downtime associated with bed cycling, making it well-suited for large-scale industrial applications. The technology’s robust operation includes the ability to process streams containing suspended solids whilst maintaining stable performance under variable feed conditions.

What Financial Impact Will the Clean TeQ Water Rio Tinto Contract Deliver?

The A$19.2 million contract delivers significant financial value spread across three years, providing revenue visibility and cash flow stability for Clean TeQ Water. However, the wider implications extend far beyond immediate financial returns. With a market capitalisation of approximately A$33.9 million and a cash position of A$3.4 million as of late October 2025, this contract represents substantial value relative to the company’s current size.

The staged delivery schedule aligns with Clean TeQ’s operational capacity whilst providing predictable revenue streams. Moreover, the endorsement from Rio Tinto creates considerable reputational value that is expected to accelerate business development activities across the lithium triangle region.

The financial impact of the Clean TeQ Water Rio Tinto contract becomes particularly apparent when compared to the company’s market capitalisation, representing approximately 57% of its total market value. This project scale demonstrates the company’s capability to secure and execute major contracts with tier-one mining companies.

Why Did Rio Tinto Select Clean TeQ Water for Lithium Concentrate Processing?

Rio Tinto’s selection criteria likely focused on operational efficiency, sustainability credentials, and proven technology performance. The mining giant’s rigorous vendor evaluation process validates MBIX technology’s commercial viability at an industrial scale. In addition, the decision reflects Rio Tinto’s commitment to implementing best-in-class solutions for its high-priority lithium operations.

Competitive Advantages:

• Continuous Operation: Eliminates downtime for bed regeneration cycles.
• Water Efficiency: A critical consideration in arid regions like Argentina’s lithium triangle.
• Higher Recovery Rates: Reduced lithium losses improve project economics.
• Operational Flexibility: Handles variable feed conditions effectively.
• Environmental Benefits: Reduced water usage aligns with sustainability requirements.

The lithium industry faces increasing pressure to adopt more sustainable processing methods as environmental regulations tighten globally. MBIX technology addresses these challenges whilst delivering superior economic outcomes, making it an attractive solution for major mining companies pursuing responsible resource development.

How Does the Clean TeQ Water Rio Tinto Contract Position the Company for Growth?

The Rio Tinto contract creates multiple growth catalysts for Clean TeQ Water investors. Success in this high-profile deployment is expected to generate additional opportunities across the lithium triangle and the broader mining sector. Furthermore, the reference credentials from a successful Rio Tinto project implementation will substantially strengthen Clean TeQ’s competitive position in future tender processes.

Immediate Growth Catalysts:

• Market Credibility: Rio Tinto’s endorsement opens doors to other major miners.
• Geographic Footprint: Establishes a presence in the world’s largest lithium reserves region.
• Technology Validation: Proves MBIX effectiveness at a commercial scale.
• Pipeline Development: Creates a foundation for additional South American contracts.

The global lithium market is experiencing high demand growth, driven by electric vehicle adoption and energy storage requirements. Traditional processing methods increasingly struggle to meet both environmental standards and economic requirements, creating opportunities for advanced technologies like MBIX.

What Operational Advantages Does MBIX Technology Provide Over Traditional Methods?

Clean TeQ Water’s proprietary MBIX technology platform differentiates the company from traditional engineering firms and generic equipment suppliers. The continuous counter-current operation provides superior performance characteristics compared to conventional fixed-bed ion exchange systems, delivering measurable operational and economic benefits.

Operational Benefits:

• Reduced Lithium Loss: MBIX minimises valuable product losses during processing.
• Lower Fresh Water Use: A critical advantage in water-scarce environments.
• Continuous Processing: Eliminates cyclic downtime for bed regeneration.
• Enhanced Efficiency: Higher stage efficiency improves overall plant economics.
• Solids Handling: Robust operation processes streams containing suspended solids.

The technology’s environmental benefits align with industry trends towards more responsible mining practices. As major mining companies face increasing pressure to reduce their environmental impact, technologies that deliver both performance and sustainability benefits become increasingly valuable. Similarly, reduced fresh water consumption addresses both operational cost pressures and tightening environmental regulations.

This agreement with Rio Tinto provides a strong foundation for Clean TeQ Water’s growth ambitions. For investors, the successful execution of this contract will be a key performance indicator, potentially leading to further opportunities in the resource-rich South American lithium triangle and validating the company’s advanced processing technology on a global scale.

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