Rio Tinto Completes $6.7 Billion Acquisition of Arcadium Lithium
Rio Tinto has finalized its acquisition of Arcadium Lithium for $6.7 billion, following the approval of the Scheme of Arrangement by the Royal Court of Jersey on 5 March. Arcadium Lithium will now be rebranded as Rio Tinto Lithium and will include the Rincon lithium project as part of its portfolio.
This acquisition strengthens Rio Tinto's position as a leading supplier of energy transition materials and a major lithium producer. The company now holds one of the world’s largest lithium resource bases and plans to expand its Tier 1 assets to over 200,000 tonnes per year of lithium carbonate equivalent (LCE) by 2028. With complementary technologies and geographies, Rio Tinto anticipates significant EBITDA and operating cash flow growth in the coming years.
Rio Tinto CEO Jakob Stausholm stated, "We are delighted to welcome the employees of Arcadium to Rio Tinto. 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, and operational expertise with Arcadium’s Tier 1 assets, we are creating a world-class lithium business."
As part of the transaction, Arcadium Lithium shareholders will receive $5.85 per share. Rio Tinto is funding the acquisition through an existing bridge loan facility, which will be refinanced with long-term debt financing. Following the completion of the deal, 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).
