Rio Tinto has announced its acquisition of U.S.-based Arcadium Lithium for $6.7 billion, positioning itself as the world’s third-largest lithium producer, crucial for electric vehicle batteries.
Key details include:
The purchase price is $5.85 per share, representing a nearly 90% premium over Arcadium’s closing price prior to the announcement.
This deal will give Rio access to lithium mines and processing facilities across Argentina, Australia, Canada, and the U.S., catering to major customers like Tesla, BMW, and General Motors.
Despite current oversupply issues in the lithium market, Rio’s CEO, Jakob Stausholm, expressed confidence in long-term demand, projecting a significant supply shortfall by the end of the decade.
The acquisition aligns with Rio’s strategy to enhance its portfolio of low-carbon raw materials essential for the energy transition.
Arcadium’s assets include advanced processing facilities and substantial lithium deposits, which complement Rio’s existing operations in copper, iron ore, and other minerals.
The deal is expected to close by mid-2025 and will not significantly impact Rio’s current capital expenditure plans.