Rio Tinto, the British-Australian mining giant, is set to become one of the world’s largest lithium producers through a $6.7 billion takeover of Arcadium Lithium, a U.S.-based company supplying lithium for electric vehicle (EV) batteries.
This move positions Rio Tinto to provide one of the key raw materials for EV batteries on a large scale in the coming years.
The acquisition deal offers a 90% premium on Arcadium’s share price as of October 3, just before the takeover announcement, although Arcadium’s stock had previously dropped due to declining lithium prices.
With this purchase, Rio Tinto enters a rapidly growing market, which CEO Jakob Stausholm described as “high-growth and attractive,” and one that aligns with the company’s broader strategy for the energy transition. Stausholm stated that the acquisition would create a world-class lithium business alongside Rio Tinto’s aluminum and copper operations.
Arcadium Lithium’s assets include lithium mines, processing plants, and deposits across Argentina, Australia, Canada, and the United States. The company’s current production capacity is 75,000 tonnes of lithium carbonate equivalent, with plans to more than double that by 2028.
This acquisition will place Rio Tinto among the top global lithium producers, competing with industry leaders like Albemarle and SQM.
Though Rio Tinto has had limited involvement in the lithium sector so far, this acquisition marks a significant expansion. The company has previously participated in a lithium project in Argentina and is planning to develop Europe’s largest lithium mine in Serbia.
The deal is expected to close by mid-2025, with both companies’ management boards having unanimously approved the transaction.
