Rio Tinto has finalized its $6.7 billion acquisition of U.S.-based lithium producer Arcadium, solidifying its position as one of the world’s largest lithium suppliers.
The deal, initially announced in October, expands the British-Australian mining giant’s role in the supply of key battery materials for electric vehicles.
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“Today we are delighted to welcome the employees of Arcadium to Rio Tinto. Together, we are accelerating our efforts to source, mine and produce minerals needed for the energy transition,” Rio Tinto CEO Jakob Stausholm said.
He added that combining Rio Tinto’s scale and financial resources with Arcadium’s technical and commercial expertise would create a “world-class lithium business.”
Arcadium supplies lithium for EV batteries used by major automakers, including BMW, Ford Motor, General Motors, Tesla, and Toyota. The acquisition includes the Rincon lithium project in Argentina, where Rio Tinto plans to invest $2.5 billion to boost production to 60,000 tonnes of lithium carbonate per year.
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The company aims to increase its total lithium production capacity to over 200,000 tonnes of lithium carbonate equivalent (LCE) annually by 2028.
The acquisition aligns with Rio Tinto’s strategy to expand its presence in critical minerals for the energy transition, alongside its existing iron ore, aluminum, and copper operations.