INTERNEWSTIMES.COM – Rio Tinto, a global mining giant, is in hot pursuit of lithium miner Arcadium, according to sources familiar with the deal. This potential acquisition could catapult Rio into the top three lithium producers worldwide, a strategic move as demand for the battery metal skyrockets.
Negotiations are in full swing, with talks continuing this week in London during the LME Week conference. An offer is expected soon, but as with any deal, there’s no guarantee it will be finalized.
Arcadium, a Philadelphia-based company, could fetch a price tag between $4 billion and $6 billion, or even higher.
The deal would give Rio a commanding position in the lithium market, placing it behind only Albemarle and SQM. This move comes at a crucial time, as the demand for lithium-ion batteries is expected to explode in the coming years, fueled by the growing electric vehicle market.
Arcadium has become an attractive target due to the recent slump in lithium prices, driven in part by oversupply from China. The company’s shares have taken a significant hit, falling more than 50% since January.
While the exact terms of the potential deal remain unclear, it’s likely to involve a mix of cash and stock. Arcadium has enlisted two investment banks to guide them through the negotiations with Rio.
The acquisition would give Rio access to a vast network of lithium mines, processing facilities, and deposits across four continents, solidifying its position as a key player in the critical minerals market. This would also expand Rio’s customer base, which already includes major players like Tesla, BMW, and General Motors.
Rio’s interest in Arcadium is part of a broader trend in the mining industry, where companies are aggressively pursuing acquisitions of critical mineral assets to meet the growing demand for materials needed for the energy transition. (Red)
