Jakob Stausholm exits Rio Tinto amid lithium investment controversies

In May 2025, Jakob Stausholm announced his departure from Rio Tinto, a major mining company based in London with significant operations focused in Australia. He had served as CEO for just over four years, having transitioned from the role of chief financial officer in early 2021. The announcement was unexpected, given there had been no prior indication of his plans to leave. His tenure was marked by a strong push into lithium production, where he faced internal disagreements with board members regarding the wisdom of investing in the volatile lithium industry amidst declining prices. The announcement of Stausholm’s exit raised questions about internal management dynamics within the company. While he had been commended for restoring trust with key stakeholders and aligning the company’s portfolio, his aggressive investment decisions, particularly a $6.7 billion acquisition related to lithium brine processing, sparked concern among other senior executives. The company had committed to increase its exposure to lithium, anticipating its potential as a core industry in the future. However, this aligns poorly with the views of other major players in the mining sector, including BHP, Anglo American, and Glencore, who have chosen to avoid similar investments in lithium. Compounding the challenges Stausholm faced during his leadership were operational issues in Rio Tinto’s West Australian iron ore mines, where declining ore grades resulted in reduced payments from customers. Iron ore remains critical to the company, generating almost 80% of its annual profit. A growing push from organized labor to re-unionize operations added further pressure, especially with the Australian government's support for labor rights. Thus, whoever takes over the CEO role will inherit a complex and turbulent environment that requires navigating both market challenges and organizational tensions. The context surrounding Stausholm’s exit mirrors prior high-profile exits at Rio Tinto, highlighting a pattern of instability in its leadership. Previous CEOs departed under controversial circumstances, including Tom Albanese after heavy losses in Mozambique and Jean-Sebastien Jacques following the destruction of an Aboriginal sacred site. Now, with Stausholm’s abrupt departure, speculation surrounds potential successors, including Simon Trott, currently leading the iron ore division, and Bold Baatar, the chief commercial officer. The future trajectory of Rio Tinto now hangs in balance as the board seeks to stabilize leadership and refine its investment strategies, particularly in the face of a recovering market for mining interests.