Posted on 08 Oct 2024
Anglo-Australian mining giant Rio Tinto is in discussions to buy US lithium mining company Arcadium Lithium, the companies confirmed Monday.
If successful, the acquisition would see the creation of one of the largest producers of lithium, a material key for EV batteries.
“The approach [by Rio Tinto] is non-binding and there is no certainty that any transaction will be agreed to or will proceed,” Rio Tinto says in a statement seen by Kallanish.
Separately, Arcadium notes the company continues to be “focused on executing its strategic vision and pathway to significant growth.”
The two companies did not disclose any financial details of the potential acquisition. However, Arcadium could reportedly be valued between $4 billion and $6 billion/
Arcadium was formed last year by a $10.6 billion merger of Australia’s Allkem and the US’ Livent. The company operates assets in Argentina, Australia, the US, Canada, Japan, the UK and China. Its customer base includes automotive giants such as Tesla, BMW and General Motors.
Arcadium’s Australia shares were up over 45% in early trading on Monday. It was trading at AUD 6.09/share at the time of writing. Rio’s shares, however, were down around 2% on the London Stock Exchange.
Rio Tinto’s acquisition offer comes amid an ongoing low-price environment for the lithium sector. Indeed, Arcadium last month suspended expansion plans at its Mt Cattlin lithium mine in Australia citing weak lithium prices.
Source:Kallanish
