Rio Tinto completes acquisition of Arcadium Lithium for $6.7 billion

Mining giant Rio Tinto has completed the acquisition of Arcadium Lithium for $6.7 billion, a deal approved by the Royal Court of Jersey on 5 March. The deal, which became official on 6 March, makes Rio Tinto the parent company of Arcadium, now renamed Rio Tinto Lithium, and strengthens its position in materials for the energy transition.

The agreement, funded by a short-term bridge loan which will be replaced by long-term debt, provides for a cash payment of $5.85 per share to Arcadium shareholders. Following completion, Arcadium shares and deposit receipts will be delisted from the New York Stock Exchange (NYSE) and the Australian Securities Exchange (ASX). Rio Tinto Lithium aims to achieve a production capacity of more than 200,000 tonnes per annum of lithium carbonate equivalent (LCE) by 2028, leveraging Arcadium's leading assets and growing demand for this key battery metal.

Welcoming the milestone, Rio Tinto CEO Jakob Stausholm said: "By combining our scale, financial strength and expertise with Arcadium's assets and capabilities, we are creating a world-class lithium business, alongside our leading iron, aluminium and copper operations. He emphasised the Group's commitment to minimising its environmental impact while meeting the needs of the energy transition.

This acquisition positions Rio Tinto among the world leaders in lithium, a strategic market at a time when demand for electric vehicles and energy storage is exploding. With this acquisition, the Group is diversifying its portfolio and consolidating its presence in a rapidly changing sector, anticipating significant revenue and cash flow growth by the end of the decade.