Rio Tinto in Talks to Acquire Arcadium Lithium — Update

By Rhiannon Hoyle

Mining giant Rio Tinto is in talks to buy New York-listed lithium producer Arcadium Lithium, its latest attempt to establish a foothold in the fast-growing market for a critical mineral used to power electric cars.

Rio Tinto wants to reshape its business to produce more of the metals it expects will be in demand amid huge growth in clean-energy technologies globally. Today, the world's second-biggest miner by market value relies on steel ingredient iron ore for the bulk of its profits.

Lithium has been one of Rio Tinto's priorities for growth, with the miner forecasting demand will surge in the decade ahead because of lithium's role not only in electric vehicles but for giant batteries that can release electricity into the power grid when customers need it.

Chief Executive Jakob Stausholm last year signaled Rio Tinto was interested in expanding its lithium business, but said he was mindful of paying too much for an acquisition.

Arcadium Lithium, formed in January by the merger of Philadelphia-based Livent and Australia's Allkem, has a market value of roughly $3 billion.

In a statement on Monday, Rio Tinto said it has made a takeover approach to Arcadium Lithium, but that there is no certainty a deal will be agreed. The miner said it will not comment further unless an update to investors is needed.

Arcadium Lithium, in a separate statement, confirmed the approach. It said it is focused on its own growth plans and that it also wouldn't comment further.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

October 06, 2024 19:48 ET (23:48 GMT)

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