Rio Tinto Plc (RIO) announced Tuesday that it has energized a new solar facility at its Kennecott copper mine in Utah, and here's the cool part: the solar panels contain a critical mineral that Kennecott produces as a byproduct of its regular copper refining operations. Talk about closing the loop.
The newly powered installation adds 25 megawatts to an earlier 5-megawatt project that went online in 2023. Together, the systems bring Kennecott's total solar capacity to 30 megawatts, enough to supply electricity to roughly 1,026 average U.S. households each year. Rio Tinto says the project cuts Kennecott's Scope 2 emissions by about 6%.
Building Solar With What You Dig Up
The new solar array includes over 71,000 panels containing tellurium, a critical mineral for solar technology that Kennecott started producing in 2022. That makes it one of only two U.S. producers of tellurium, which comes out as a byproduct when refining copper.
Here's how the supply chain works: Kennecott produces the tellurium, ships it to 5N Plus in Canada where it's converted into thin-film semiconductor materials, and then it goes primarily to First Solar Inc. (FSLR) for manufacturing the photovoltaic panels. Those panels then make their way back to Kennecott, where they're now generating power for the mine. The entire tellurium supply chain stays in North America.
Ahead of Schedule
Crews began construction of the solar plant in October 2024, working with Bechtel as a partner. The team completed and commissioned the project last October and energized it in December—two months ahead of schedule, according to Bechtel.
"This new solar plant is more than a source of renewable power for our operations; it's a demonstration of circularity and supply chain resilience," said Nate Foster, managing director of Rio Tinto Kennecott.
Scott Austin, Bechtel's renewables and clean power leader, added: "Working closely with Rio Tinto, Bechtel is proud to have delivered this project two months ahead of schedule."
RIO Price Action: Rio Tinto shares were up 0.19% at $85.29 at the time of publication on Tuesday. The stock is approaching its 52-week high of $87.34.
