How Rio Tinto's Restructure will Benefit the EV Supply Chain

Rio Tinto is paving the way for the future by setting a clear direction with a new streamlined operating model focused on enhancing its mining operations and supply chains to better support the EV market, which is an increasingly vital segment of the global economy.

In an effort to boost shareholder value over the long term and reinforce its critical role in the electric vehicle ecosystem, Rio Tinto is restructuring into three primary product groups: iron ore, aluminium and lithium, and copper.

This restructuring, effective immediately, will see each group led by seasoned executives who will drive the allocation of capital and talent to areas promising the highest value returns, focusing on the future of EV and mobility industries.

Enhancing EV supply integration

Central to this restructuring initiative is Rio Tinto’s Iron Ore division, now unified under the leadership of Matthew Holcz, the newly appointed Chief Executive of Iron Ore.

The organisation has merged its Western Australian operations with the Iron Ore Company of Canada and is preparing to incorporate the Simandou project in Guinea upon its completion. This integration ties together mature operations with an emerging key project, forming a cohesive global enterprise aimed at sharing best practices in safety, technology and operational expertise.

“A simplified business structure, grounded in our fundamental commitment to safety and with sharper focus on the most compelling opportunities we have, will enable us to deliver new standards of operational excellence and value creation,” says Simon Trott, Rio Tinto’s new Chief Executive.

The strategic integration aims to bolster the consistency, resilience, and efficiency of the supply chains that support global steel production and infrastructure development, both integral to the EV industry's growth.

Strategic focus on lithium and aluminium

In another strategic alignment, the company’s Lithium assets are now incorporated into the Aluminium business unit, overseen by Jérôme Pécresse. This strategic realignment under a singular leadership structure aims to harness synergies where processing is intensive, capitalising on learnings from proven productivity initiatives like the Safe Production System.

This reorganisation also acknowledges shifting global demands, with Lithium's key role in battery production and Aluminium’s critical function in transport, packaging, and construction sectors. As these markets undergo increased scrutiny for sustainability and ethical practices, Rio Tinto positions itself to enhance transparency and control over these essential supply chains.

Commitment to copper and critical minerals

Copper remains a standalone product group under the leadership of Katie Jackson, with continued emphasis on expanding production at Oyu Tolgoi in Mongolia, stabilising operations at Kennecott in the US, and tapping new sources like the Resolution project and Nuevo Cobre in Chile.

As demand for copper intensifies due to its crucial role in the energy transition - electricity generation, transmission and storage - Rio Tinto’s focus on this mineral supports the broader shift towards sustainable energy solutions and electric mobility.

Alongside the main units, the Borates and Iron & Titanium businesses have transitioned to the Chief Commercial Officer’s oversight for further strategic evaluation, remaining operational until further decisions are made.

Leadership transformations for the future

Alongside the structural shifts, Rio Tinto sees several leadership transitions. Sinead Kaufman, with a 28-year tenure, plans to leave the company by October 2025. Known for leading pivotal changes such as exiting coal and establishing lithium operations, Kaufman’s legacy leaves a firm foundation for the next chapter.

In Australia, a new Head will oversee stakeholder relations and external partnerships as Kellie Parker departs her role as Chief Executive Australia.

Former Chief Executive Jakob Stausholm, who led the company for nearly five years, offered his final reflections on LinkedIn, crediting the progress made since a difficult starting point and commends the teams and stakeholders who helped shape Rio Tinto’s course.

"This has been one of the most extraordinary chapters of my professional life," Jakob says.

"Not just because of what we’ve achieved but because of the people I’ve had the privilege of working alongside.

"My handover to Simon Trott, has been busy and productive; full of stakeholder engagement - including three heads of state across 3 countries. First was US President Donald Trump, then President Milei in Argentina and President Doumbouya in Guinea."

Simon looks to the future: “We have delivered resilient results this year, remain on track to deliver strong mid-term production growth, and continue to make progress against our objectives.

"Our focus now is on unlocking further shareholder value, putting both our capital and talent where it will deliver the greatest returns.”