THE NEXT LITHIUM GIANT

RIO TINTO’S ACQUISITION OF ARCADIUM LITHIUM IS EXPECTED TO BE FINALISED BY MID-2025. AUSTRALIAN MINING LOOKS AT WHAT THE DEAL MEANS FOR THE GLOBAL INDUSTRY.

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Rio Tinto’s ongoing acquisition of Arcadium Lithium comes at an interesting time for the global lithium sector.

The critical mineral has been hit with lower prices primarily caused by a supply surplus and an increase in lithium supplies from countries such as China. A decrease in global electric vehicle (EV) sales also played a part in the decline, despite EV demand rising.

The downturn resulted in Arcadium’s shares decreasing by more than 50 per cent between January and October 2024, making the US lithium major an attractive takeover target for miners looking to expand their lithium footprints.

Australian Mining takes a look at how the acquisition came to be and what it means for the global lithium industry.

The beginning Created in 2024 via the Allkem–Livent merger, Arcadium is a leading global lithium chemicals producer with a diverse portfolio.

The company has various multinational upstream capabilities and downstream processing offerings. These include assets in Argentina and Australia and downstream conversion resources in China, Japan, the UK and the US, where Arcadium operates the only integrated mine-to-metal production facility in the western hemisphere.

Arcadium is also developing projects in Argentina and Canada to increase its production capabilities to meet global lithium demand.

But it was Arcadium’s Salar Del Hombre Muerto, Olaroz, Sal de Vida and Cauchari operations that caught the eye of Rio Tinto, which has been on the hunt for lithium acquisitions for quite some time.

The major miner is developing the Rincon lithium project in Argentina and is focused on perfecting its lithium extraction technology, with the company to commence production through a 3000-tonne lithium carbonate starter plant before scaling up.