Rio Tinto, Anglo-Australian multinational mining giant, announced Wednesday it signed a transaction agreement to acquire Arcadium Lithium for $6.7 billion.
The move aims to strengthen Rio Tinto’s position as a leading supplier of energy transition commodities, including aluminum, copper, iron ore, and lithium, the company said.
In an all-cash deal, Rio Tinto will pay $5.85 per share for the US-based lithium miner.
Arcadium Lithium has become a major player in the lithium market, which is essential for the growing electric vehicle and renewable energy sectors, the announcement added.
Currently, Arcadium Lithium has an annual lithium production capacity of 75,000 tonnes of lithium carbonate equivalent, with plans to more than double this capacity by the end of 2028.
The company employs nearly 2,400 people globally and operates facilities and projects across Argentina, Australia, Canada, China, Japan, the UK, and the US.
‘Acquiring Arcadium Lithium is a significant step forward in Rio Tinto’s long-term strategy, creating a world-class lithium business alongside our leading aluminum and copper operations to supply materials needed for the energy transition,’ said Rio Tinto CEO Jakob Stausholm.
‘We look forward to building on Arcadium Lithium’s contributions to the countries and communities where it operates, drawing on the strong presence we already have in these regions,’ he added.
This acquisition marks a pivotal move in the ongoing shift towards sustainable energy solutions, positioning Rio Tinto to meet the increasing demand for lithium in electric vehicle batteries and other renewable technologies.
