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Factbox-Arcadium deal could power Rio Tinto's entry into lithium supplier big league

investing.com 08/10/2024 - 13:43 PM

Rio Tinto's Lithium Expansion

(Reuters) – Rio Tinto (NYSE:RIO) is in discussions to acquire lithium producer Arcadium Lithium in a move that could elevate the Anglo-Australian miner to the position of the third-largest producer of the electric-vehicle battery metal.

Projects Overview

  • Rincon Project: Set to commence production later this year in Argentina.
  • Jadar Project: Located in Serbia, it may take a minimum of two years to secure all necessary permits.

Market Outlook

Despite some global automakers lowering short-term targets, the long-term outlook for electric vehicle demand remains positive, potentially leading to more acquisitions among lithium producers.

Top Lithium Producers

  1. Albemarle (NYSE:ALB)

    • Market Cap: $12 billion
    • Operations: North America, Chile, Western Australia
    • 2023 Production: 39,000 tons of lithium metal
  2. Sociedad Química y Minera de Chile (SQM)

    • Market Cap: $11.43 billion
    • Ownership: 20% by China's Tianqi Lithium
    • 2022 Production: 165,500 tons of lithium hydroxide and carbonate
  3. Ganfeng Lithium

    • Market Cap: $9.37 billion
    • Operations: Western Australia, Argentina, Mexico, China
    • Stake: 6.16% in Pilbara Minerals
  4. Tianqi Lithium

    • Market Cap: $8.11 billion
    • Operations: Australia, Chile, China
  5. Mineral Resources

    • Market Cap: $7.12 billion
    • Mining: Biggest producer of hardrock spodumene
    • 2022 Shipment: 847,000 dmt of spodumene concentrate
  6. Pilbara Minerals

    • Market Cap: $6.34 billion
    • Operations: Pilgangoora mine, Western Australia
    • 2023 Production: 620,147 dmt of spodumene concentrate
  7. Arcadium Lithium

    • Market Cap: $3.31 billion
    • Formation: Merger of Allkem and Livent on Jan. 4, 2024
    • 2023 Production: 29,661 tons of lithium carbonate, and 239,312 dmt of spodumene concentrate from Allkem alone
  8. Liontown Resources (ASX:LTR)

    • Market Cap: $1.45 billion
    • Operations: Western Australia
    • September Shipment: 11,855 wet metric tons of spodumene concentrate

Note: ($1 = 1.4804 Australian dollars)




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