Rio Tinto Acquires Arcadium for $6.7 Billion, Expanding Lithium Portfolio

The acquisition positions Rio Tinto as a major player in the lithium market amid price slumps and growing demand for electric vehicle components.

Rio Tinto's acquisition of Arcadium Lithium for $6.7 billion is an all-cash deal at a 90% premium to Arcadium's recent share price.
This move makes Rio Tinto the third-largest lithium producer globally, enhancing its presence in Argentina, Australia, Canada, and the United States.
Arcadium's direct lithium extraction technology is expected to revolutionize lithium production, offering faster and more efficient methods than traditional mining.
The deal comes amid a downturn in lithium prices due to oversupply and slower electric vehicle sales, with Rio Tinto betting on a future demand surge.
Rio Tinto aims to leverage Arcadium's assets and expertise to strengthen its position in the energy transition market, alongside its aluminium and copper operations.