Rio Tinto Acquires Arcadium: Major Player in Lithium Market Is Born

Australian mining giant Rio Tinto has entered into an agreement to acquire Arcadium Lithium, a US-headquartered chemical company that operates the largest lithium deposits in Argentina.

Rio Tinto will acquire Arcadium at $5.85 per share for a $6.7 billion deal at a 90% premium to Arcadium’s closing price of $3.08 per share on October 4. It is the largest mining operation in recent years and comes at a time when mineral prices have fallen significantly due to oversupply and a delay in the development of the electric vehicle market.

“The transaction will add Arcadium’s additional world-class lithium business to Rio Tinto’s portfolio, creating a global leader in energy transition commodities, from aluminum and copper to high-grade iron ore and lithium,” the Australian company said in a statement. “Arcadium is a fast-growing, vertically integrated global lithium-based chemical producer with leading lithium chemical production and processing capabilities, including hard rock mining, extraction of traditional salt brines, and direct lithium extraction.”

With 2400 employees and operations in Australia, Canada, China, Japan, Great Britain, and the USA, as well as Argentina, Arcadium’s annual lithium production capacity is 75,000 tons of lithium carbonate equivalent, with expansion plans to double production capacity by 2028.

“The acquisition of Arcadium Lithium represents a significant step forward in Rio Tinto’s long-term strategy, creating a world-class lithium business that complements our leading aluminum and copper operations and provides the materials needed for the energy transition,” commented Jacob Stausholm, CEO of Rio Tinto.