Rio Tinto in Talks to Acquire Lithium Miner Arcadium

By Ernest Scheyder and Clara Denina

Rio Tinto is in negotiations to buy lithium miner Arcadium, which could make it the third-largest producer of lithium for electric vehicle batteries. Arcadium’s shares rose 36% during extended trading on Friday.

Discussions have been ongoing and continued during the LME Week conference in London. An offer is expected soon, although the outcome of the talks is uncertain. Arcadium may be valued between $4 billion to $6 billion, according to sources.

The acquisition would position Rio as one of the major suppliers of lithium, a metal crucial for the growing demand in electric vehicles and consumer electronics. Despite a slump in lithium prices due to oversupply in China, Arcadium is regarded as a lucrative target.

It’s unclear whether the deal will involve cash, stock, or a combination. Arcadium has appointed two investment banks for negotiations with Rio. The merged company has extensive lithium mining operations and a significant customer base, including Tesla and GM.

Rio Tinto is already a major player in copper and iron ore production but is facing challenges with its proposed Jadar mine in Serbia. Arcadium’s direct lithium extraction expertise could enhance Rio’s operations in this segment.

Arcadium was recently formed from the merger of Livent and Allkem, presenting an aggressive growth strategy to increase earnings by 2028. As interest in mining critical minerals surges, Rio’s pursuit of Arcadium reflects broader industry trends. BHP and Glencore are also active in acquiring critical mineral assets.

Arcadium and Rio Tinto declined to comment.