Rio Tinto to Acquire Arcadium Lithium in $6.7 Billion Deal

Mining giant Rio Tinto, the world’s second-largest mining company, has announced plans to acquire U.S.-based lithium producer Arcadium in a $6.7 billion deal. This acquisition is set to position Rio Tinto as one of the leading global suppliers of lithium, behind industry giants Albemarle and SQM.

The proposed all-cash transaction values Arcadium at $5.85 per share, marking a 90% premium to its closing price of $3.08 per share on October 4. With Arcadium’s current market valuation standing at $3.31 billion, according to LSEG data, this acquisition represents a significant leap in Rio Tinto’s portfolio, underscoring its commitment to expanding its role in the energy transition.

Rio Tinto CEO Jakob Stausholm hailed the acquisition as a key milestone for the company, integrating lithium production with its well-established aluminum and copper operations. “This 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,” Stausholm stated.

The deal follows earlier speculation about discussions between the two companies and will further strengthen Rio Tinto’s position in the growing market for lithium, a critical component in electric vehicle batteries and other renewable energy technologies.