Rio Tinto digs into Lithium with $6.7bn acquisition

What happened

On 9 October, mining giant Rio Tinto announced its intention to acquire Arcadium Lithium, a smaller miner with lithium operations in Argentina, Australia and Canada, for $6.7bn. Rio Tinto aims to integrate Arcadium’s lithium resources in its diversified portfolio of energy transition-related commodities.

Rio Tinto will acquire Arcadium’s operations in an all-cash transaction at $5.85 per share, a 90% premium on Arcadium’s stock price as of 8 October. This values Arcadium at $6.7bn and positions Rio Tinto as a Top 3 lithium producer by output and revenue, behind US-based Albermarle and Chile’s state-owned Sociedad Química y Minera de Chile (SQM).

Why it matters

• Lithium industry attracts a Top 10 global miner for the first time. Rio Tinto is an Anglo-Australian miner with a portfolio of commodities including aluminum, copper, and iron with $54bn in revenue in 2023 while Arcadium is a US-based miner focused on lithium with $1bn in revenue in 2023. Arcadium was borne out of a $10.6bn merger of US-based Livent with Australia-based Allkem at the start of 2024.