London, June 23, 2026, 09:26 BST
Rio Tinto plc dropped 3.5% early Tuesday in London, hit by selling in the metals space despite the company announcing a battery-electric mining truck trial. The shares traded at 7,248 pence at 08:48 BST, down from 7,513 pence at Monday’s close.
FTSE 100 falls 0.95%, Europe’s basic-resources index drops 3.3% as U.S. rate-hike bets pick up The FTSE 100 dropped about 0.95%, steeper than the wider market. Europe’s basic-resources index slid 3.3%. Investors pushed up bets on more U.S. interest-rate hikes. Higher rates tend to boost the dollar and weigh on demand for commodities and other risk assets.
Metal prices stayed weak. Copper was off about 2.9% and yuan iron ore futures edged down 0.2%, according to indicative data. The 62% benchmark iron ore price held at $100.78 a metric ton Monday, down close to 8% over the past month.
Rio gave back all of Monday’s 1.61% gain and then some on Tuesday. The stock finished Monday at £75.13, ahead of the FTSE 100’s 0.72% climb. Shares were already trading well under their May 27 high at £91.17 before the latest drop.
Rio, BHP and Caterpillar are each testing two battery-electric Cat 793 XE haul trucks at BHP’s Jimblebar iron ore site in Western Australia. The trucks have now clocked over 100 hours and done 200 test laps, the companies said. Next up, they plan to look at how the trucks charge while driving.
Rio Tinto Iron Ore Chief Executive Matthew Holcz said, “This trial will give us real-world data in some of the most demanding operating conditions on earth.” The company’s statement gave no capital budget or commercial deployment timeline and left out any forecast for cost savings, so there’s no direct impact on earnings for now. Rio Tinto
Commodity bets stay in the spotlight. In 2025, iron ore made up about 60% of Rio’s divisional earnings, with copper making up around 30%, double its previous share. That keeps Rio exposed to both iron ore and copper price moves, even as it expands in aluminium and lithium.
Rio Tinto started the quarter with stronger production numbers. The April update showed Pilbara iron ore production up 13% versus a year ago. Sales edged up 2%. Tropical cyclones hit shipments, cutting about eight million tons. Rio expected to recover around half of that loss.
But risks are mounting. A stronger U.S. dollar or higher interest-rate bets could push copper and other metals lower, and weaker Chinese steel demand would hit iron ore more. On Tuesday, markets saw better odds for two Fed rate hikes in 2026. If those bets fade or metals rebound, Rio’s losses could ease.
Next up, investors are watching for Rio’s Q2 operations review on July 15 to see if shipment recovery and copper growth are holding up. Half-year results are due July 29.
