Mining giant Rio Tinto is negotiating the acquisition of Arcadium, a lithium producer listed on the New York Stock Exchange. This move represents Rio Tinto's latest effort to strengthen its position in the rapidly growing lithium market. The company announced it had made an offer to acquire Arcadium, though it remains uncertain if an agreement will be reached. Rio Tinto stated that it would not provide further comments unless necessary updates are required for investors.
Rio Tinto aims to transform its business to produce more metals, anticipating that global demand for these metals will increase significantly due to the rise in clean energy technologies. The company's profits currently mainly come from iron ore, a steelmaking raw material.
Lithium has been a key focus for Rio Tinto's growth strategy. The company predicts a surge in lithium demand over the next decade, driven by its crucial role in electric vehicles and large-scale batteries that can supply electricity to the grid when needed.
Arcadium was formed in January through the merger between Philadelphia-based Livent and Australia's Allkem, and it currently has a market value of approximately $3 billion.
