Mining giant Rio Tinto acquires US Arcadium Lithium for $6.7 billion in cash

Rio Tinto announced that it will acquire Arcadium Lithium in an all-cash transaction of $5.85 per share, valuing the lithium company at approximately $6.7 billion.
Rio Tinto said the transaction will incorporate Arcadium Lithium's world-class, complementary lithium business into its portfolio, thereby establishing its global leading position in energy transition commodities from aluminum and copper to high-grade iron ore and lithium.

Acadium Lithium is a global vertically integrated lithium chemical producer with lithium chemical manufacturing and extraction process capabilities, including hard rock mining, conventional brine extraction and direct lithium extraction.

Rio Tinto said in a statement that the company currently has an annual production capacity of 75,000 tons of lithium carbonate equivalent for a range of products including lithium hydroxide and lithium carbonate, and has formulated expansion plans to more than double its production capacity by the end of 2028. Arcadium Lithium's global operations include plants and projects in Argentina, Australia, Canada, China, Japan, the United Kingdom and the United States, with approximately 2,400 employees.

Rio Tinto said it is confident in the long-term prospects of lithium, expecting lithium demand to grow at a compound annual rate of more than 10% by 2040, leading to supply shortages.

Rio Tinto CEO Jakob Stausholm said: "The acquisition of Acadim Lithium is an important step forward in Rio Tinto's long-term strategy. It will build a world-class lithium business in addition to our leading aluminum and copper businesses to provide the materials needed for energy transformation. Acadim Lithium is an excellent business and we will use our scale, development capabilities and financial strength to fully realize the potential of its first-tier portfolio. This is a counter-cyclical expansion, consistent with our disciplined capital allocation framework, increasing our exposure to high-growth, attractive markets at the right time in the cycle."

Acadim Lithium CEO Paul Graves added: "We believe this is an attractive cash offer that reflects the full and fair long-term value of our business and reduces the risks to our shareholders from the execution of our development portfolio and market volatility."

The transaction is subject to customary regulatory approvals and other closing conditions and is expected to be completed in mid-2025.