London-headquartered mineral resources company Rio Tinto is set to become the world’s largest lithium producer after announcing a $9.9 billion (USD 6.7 million) move to acquire Ireland-headquartered Arcadium Lithium.
Global lithium miner and processor, Arcadium’s current annual lithium production capacity, which includes products such as lithium hydroxide and lithium carbonate, is 75,000 tonnes lithium carbonate equivalent, with expansion plans in place to more than double capacity by the end of 2028.
Despite lithium minerals prices down over 80% from an all-time high in October 2022, Rio Tinto said it is confident in the long-term outlook for lithium, with more than 10% compound annual growth rate in lithium demand expected through to 2040 leading to a supply deficit.
Rio Tinto and Arcadium’s combined assets will represent the world’s largest lithium resource base and make Rio Tinto one of the leading lithium producers globally and a market leader in lithium processing.
Rio Tinto Chief Executive Officer Jakob Stausholm said acquiring Arcadium Lithium is a significant step forward in Rio Tinto’s long-term strategy, creating a world-class lithium business alongside their aluminium and copper operations to supply materials needed for the energy transition.
“Arcadium Lithium is an outstanding business today and we will bring our scale, development capabilities and financial strength to realise the full potential of its Tier 1 portfolio,” Stausholm said.
Arcadium Lithium Chief Executive Officer Paul Graves said Arcadium Lithium has one of the world’s widest offerings of lithium chemical products and manufacturing network, backed by a broad technology portfolio and expertise in all aspects of the lithium value chain.
“This agreement with Rio Tinto demonstrates the value in what we have built over many years at Arcadium Lithium and its predecessor companies,” Graves said.
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