According to Reuters, on December 23, Arcadium Lithium announced that it will be acquired by Australian mining giant Rio Tinto through a $6.7 billion transaction. The deal received approximately 98% shareholder approval and is expected to close by mid-2025. Upon completion, Rio Tinto will surpass most competitors to become the world’s third-largest lithium miner, trailing only Albemarle and Chilean chemical company SQM.
Previously, Rio Tinto said it will conduct an all-cash acquisition at $5.85 per share, representing a 90% premium over Arcadium Lithium’s closing price of $3.08 on October 4. Through this acquisition, Rio Tinto will gain access to Arcadium Lithium’s lithium resources, processing facilities, and deposits located in Argentina, Australia, Canada, and the United States. Additionally, Rio Tinto will have access to global electric vehicle leaders such as Tesla, BMW, and General Motors.
On Dec 12, Rio Tinto also recently announced a major investment plan to spend $2.5 billion to expand its Rincon lithium project in Argentina. Once expanded, Rincon’s annual production capacity will reach 60,000 tons of battery-grade lithium carbonate per year, positioning it as a key player in global lithium resource development. Jakob Stausholm, CEO of Rio Tinto, stated that the acquisition and investment in the Rincon project reflect the company’s long-term confidence in the lithium industry.
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