According to Reuters, Anglo-Australian mining giant Rio Tinto has announced plans to establish a standalone lithium division, Rio Tinto Lithium, after finalizing its $6.7 billion acquisition of Arcadium Lithium. The acquisition, expected to close in July, will make Rio Tinto the world’s third-largest lithium producer and marks the company’s largest operation in over a decade (Batteriesdaily: Jan, 7).
The new division will oversee Rio’s $2.5 billion Rincon lithium project in Argentina, a flagship operation employing innovative direct lithium extraction (DLE) technology to accelerate production. Rio Tinto CEO Jakob Stausholm highlighted the importance of a focused integration approach for Arcadium to ensure smooth operations and talent retention. Arcadium’s CEO, Paul Graves, will lead the lithium division from New York, leveraging the expertise of Arcadium’s 2,400 employees across nine countries.
The acquisition positions Rio Tinto as a key player in the lithium sector, aligning with its strategy to expand into high-demand, low-carbon minerals. Lithium demand is projected to surge later this decade, driven by electric vehicle adoption and renewable energy storage, despite a recent supply glut. Arcadium, which generates 84% of its revenue from Asia, the global hub for lithium demand, provides Rio with a strong foothold in the region and growth potential in Western markets supported by policies such as the U.S. Inflation Reduction Act.
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