ESG Today writes that Rio Tinto will pay out the 6.7 billion USD in an all-cash transaction, which could be completed by mid-2025. Rio Tinto is one of the world’s most important mining companies, offering services for processing iron ore, copper and aluminum, among other types of raw materials. Through the recent acquisition, the company will also become one of the planet’s top lithium suppliers, as this material continues to prove its importance in the clean energy transition, but not only.
Arcadium currently produces around 75.000 tons of lithium carbonate equivalent per year, meaning that the company processes the lithium and transforms it into various lithium-derivates. Company officials announced plans to double the processing capacity by 2028.
Rio Tinto CEO Jakob Stausholm said that “acquiring Arcadium Lithium is a significant step forward in Rio Tinto’s long-term strategy, creating a world-class lithium business alongside our leading aluminium and copper operations to supply materials needed for the energy transition.”
Despite the fact that lithium prices have dropped by around 80% copared to their peak, Rio Tinto officials expect to see an increase in this regard, as demand for lithium products increases by some 10% every year. Also, by 2040, the demand will outstrip the supply, which is why companies must find solutions to make sure we can achieve our energy-related goals.
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