Rio Tinto to Acquire Arcadium Lithium in $6.7 Billion Deal to Boost Energy Transition Metals
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Key Impact Points:
- Rio Tinto will acquire Arcadium Lithium for $5.85 per share, valuing the deal at approximately $6.7 billion.
- The acquisition strengthens Rio Tinto’s position in the lithium market, essential for energy transition commodities.
- Arcadium’s assets will enhance Rio Tinto’s growth potential, with plans to double lithium production capacity by 2028.
Rio Tinto has announced a definitive agreement to acquire Arcadium Lithium for $5.85 per share, representing a 90% premium over Arcadium’s recent closing price. This all-cash transaction values Arcadium at approximately $6.7 billion and marks a strategic move to bolster Rio Tinto’s leadership in energy transition commodities.
Rio Tinto CEO Jakob Stausholm stated, “Acquiring Arcadium Lithium is a significant step forward in Rio Tinto’s long-term strategy, creating a world-class lithium business alongside our leading aluminium and copper operations.” He emphasized that this acquisition aligns with their disciplined capital allocation framework and positions the company for growth in a high-demand market.
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Arcadium Lithium is a rapidly growing, vertically integrated lithium producer with a current annual production capacity of 75,000 tonnes lithium carbonate equivalent. The company plans to more than double this capacity by the end of 2028. Arcadium operates globally, with facilities in key regions including Argentina, Australia, Canada, and the U.S.
Paul Graves, CEO of Arcadium Lithium, remarked, “We are confident that this is a compelling cash offer that reflects a full and fair long-term value for our business.” He noted that the acquisition will allow Arcadium to accelerate its strategy and enhance value for stakeholders.
The transaction, unanimously approved by both companies’ boards, is expected to close in mid-2025, pending shareholder and regulatory approvals. This acquisition positions Rio Tinto to become a leading player in the lithium market, with a resource base projected to support significant growth in the coming years.