Rio Tinto Group negotiates to acquire Arcadia Lithium, a company with a market value of $3 billion
Mining giant Rio Tinto is in talks to acquire Arcadium Lithium, a company valued at $3 billion, in order to establish a foothold in the rapidly growing lithium market. Rio Tinto has made a takeover offer to Arcadium, but it is not yet certain whether an agreement can be reached. The company aims to reshape its business by increasing metal production, as it is expected that lithium demand will surge in the next 10 years, especially in the electric vehicle and large battery sectors
Mining giant Rio Tinto is in negotiations to acquire Arcadium Lithium, a lithium producer listed on the New York Stock Exchange, in its latest attempt to establish a foothold in this rapidly growing market.
In a statement on Monday, Rio Tinto stated that it has made a takeover offer to Arcadium Lithium, but it is uncertain whether an agreement can be reached. Rio Tinto mentioned that it will not provide further comments unless it is necessary to update investors on the latest developments.
Rio Tinto aims to reshape its business to produce more metals. The company anticipates that these metals will meet the demand amid significant growth in global clean energy technologies. Currently, most of the profits of this second-largest mining company in the world come from iron ore, a raw material for steel production.
Lithium has always been one of Rio Tinto's key growth areas, with the company predicting a surge in lithium demand over the next 10 years. This is because lithium plays a crucial role not only in electric vehicles but also in giant batteries that can release electricity to the grid when needed by customers.
In January this year, Livent based in Philadelphia and Allkem from Australia merged to form Arcadium Lithium, which is currently valued at around $3 billion
