Rio Tinto Completes Acquisition of Arcadia Lithium and Will Become a Major Lithium Producer With One of the World's Largest Lithium Resource Reserves

Published: Mar 7, 2025 14:07

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[Rio Tinto Completes Acquisition of Arcadium Lithium, Becoming a Major Lithium Producer with One of the World's Largest Lithium Resource Reserves] Rio Tinto Group has completed the $6.7 billion acquisition of Arcadium Lithium Corporation ("Arcadium Lithium"). Previously, the Royal Court of Jersey approved the scheme of arrangement on March 5. Rio Tinto is now the ultimate parent company of Arcadium Lithium, which will be renamed Rio Tinto Lithium and will integrate Rio Tinto's Rincon lithium mine project. (Rio Tinto Group)

Rio Tinto Group has completed the $6.7 billion acquisition of Arcadium Lithium (NYSE: ALTM; ASX: LTM). Previously, the Royal Court of Jersey approved the scheme of arrangement on March 5. Rio Tinto is now the ultimate parent company of Arcadium Lithium, which will be renamed Rio Tinto Lithium and integrated with Rio Tinto's Rincon Lithium Project. This acquisition establishes Rio Tinto as a global leader in the supply of materials for the energy transition, making it a major lithium producer with one of the largest lithium resource reserves globally. Rio Tinto Lithium aims to increase the annual capacity of its Tier 1 assets to over 200,000 mt of lithium carbonate equivalent (LCE) by 2028. Benefiting from accelerated capacity expansion during a period of rising market demand, the complementary strengths in technology and geography are expected to generate significant value, with EBITDA and operating cash flow projected to increase substantially in the coming years. Jakob Stausholm, Chief Executive Officer of Rio Tinto Group, stated, "We are delighted to welcome Arcadium's employees to Rio Tinto. Together, we will work to accelerate the exploration, mining, and production of the mineral resources needed for the energy transition. By combining Rio Tinto's scale, financial strength, operational and project development expertise with Arcadium's Tier 1 assets, technical know-how, and commercial capabilities, we are building a world-class lithium business that will stand alongside Rio Tinto's leading iron ore, aluminum, and copper businesses. "We believe Rio Tinto has the capability to provide the materials needed for the energy transition while continuing to focus on respecting local communities, minimizing environmental impact, and creating value for shareholders and other stakeholders." Shareholders of Arcadium Lithium as of the record date will receive $5.85 per share in cash consideration. Rio Tinto will fund the acquisition through an existing bridge loan and plans to replace this loan with long-term debt financing. With the completion of the transaction, Arcadium Lithium's shares and CHESS Depositary Interests (CDIs) will be delisted from the New York Stock Exchange (NYSE) and the Australian Securities Exchange (ASX), respectively.

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