Rio Tinto acquires Arcadium Lithium for $6.7B, forms new Li business
March 11, 2025
Rio Tinto, headquartered in London, UK, has completed the acquisition of Arcadium Lithium plc, Philadelphia, Pennsylvania, USA, for $6.7 billion. Following the agreement, Arcadium Lithium will become Rio Tinto Lithium and will include the Rincon lithium project.
“Today we are delighted to welcome the employees of Arcadium to Rio Tinto,” stated Rio Tinto Chief Executive Officer Jakob Stausholm. “Together, we are accelerating our efforts to source, mine and produce minerals needed for the energy transition. By combining Rio Tinto’s scale, financial strength, operational and project development experience with Arcadium’s Tier 1 assets, technical and commercial capabilities, we are creating a world-class lithium business which sits alongside our leading iron ore, aluminium and copper operations.
“We believe we are well-positioned to deliver the materials needed for the energy transition while maintaining our focus on respecting local communities, minimising environmental impacts and delivering value for shareholders and other stakeholders,” Stausholm added.
Rio Tinto Lithium aims to increase the capacity of its Tier 1 assets to over 200 thousand tonnes per year of lithium carbonate equivalent (LCE) by 2028. The company explained that complementary technologies and geographies offer compelling value driven by accelerating volume growth in a rising market and project significantly higher EBITDA and operating cash flow in the coming years.
Rio Tinto will fund the acquisition by drawing on its existing bridge loan facility, which it plans to replace with long-term debt financing. In connection with the transaction’s completion, Arcadium Lithium’s shares and CHESS Depositary Receipts (CDIs) will be delisted from the New York Stock Exchange (NYSE) and the Australian Securities Exchange (ASX), respectively.
