Rio Tinto completes acquisition of Arcadium Lithium
Rio Tinto has completed its $6.7 billion acquisition of Arcadium Lithium (NYSE: ALTM), which will be renamed to Rio Tinto Lithium. The acquisition positions Rio Tinto as a global leader in energy transition materials and major lithium producer.
The new lithium division aims to expand capacity to over 200,000 tonnes per year of lithium carbonate equivalent (LCE) by 2028. The merger combines Rio Tinto's operational expertise and financial strength with Arcadium's Tier 1 assets and technical capabilities.
Arcadium Lithium shareholders will receive $5.85 cash per share. The acquisition will be funded through a bridge loan facility, to be replaced with long-term debt financing. Following the transaction completion, Arcadium Lithium's shares will be delisted from both NYSE and ASX.
Rio Tinto ha completato la sua acquisizione da 6,7 miliardi di dollari di Arcadium Lithium (NYSE: ALTM), che sarà rinominata in Rio Tinto Lithium. L'acquisizione posiziona Rio Tinto come leader globale nei materiali per la transizione energetica e principale produttore di litio.
La nuova divisione litio mira ad espandere la capacità a oltre 200.000 tonnellate all'anno di equivalente carbonato di litio (LCE) entro il 2028. La fusione combina l'expertise operativa e la forza finanziaria di Rio Tinto con gli asset di livello 1 e le capacità tecniche di Arcadium.
Gli azionisti di Arcadium Lithium riceveranno 5,85 dollari in contante per azione. L'acquisizione sarà finanziata tramite una linea di credito ponte, che sarà sostituita da finanziamenti a lungo termine. Dopo il completamento della transazione, le azioni di Arcadium Lithium saranno rimosse sia dal NYSE che dall'ASX.
Rio Tinto ha completado su adquisición de 6.7 mil millones de dólares de Arcadium Lithium (NYSE: ALTM), que será renombrada como Rio Tinto Lithium. La adquisición posiciona a Rio Tinto como un líder global en materiales para la transición energética y un importante productor de litio.
La nueva división de litio tiene como objetivo expandir la capacidad a más de 200,000 toneladas por año de equivalente de carbonato de litio (LCE) para 2028. La fusión combina la experiencia operativa y la fortaleza financiera de Rio Tinto con los activos de nivel 1 y las capacidades técnicas de Arcadium.
Los accionistas de Arcadium Lithium recibirán 5.85 dólares en efectivo por acción. La adquisición se financiará a través de una línea de crédito puente, que será reemplazada por financiamiento a largo plazo. Tras la finalización de la transacción, las acciones de Arcadium Lithium serán excluidas tanto del NYSE como del ASX.
리오 틴토는 67억 달러 규모의 아카디움 리튬 (NYSE: ALTM) 인수를 완료했으며, 아카디움 리튬은 리오 틴토 리튬으로 이름이 변경됩니다. 이번 인수로 리오 틴토는 에너지 전환 소재의 글로벌 리더이자 주요 리튬 생산자로 자리매김하게 됩니다.
새로운 리튬 부서는 2028년까지 연간 20만 톤 이상의 리튬 탄산염 동등량(LCE) 생산 능력을 확장하는 것을 목표로 하고 있습니다. 이번 합병은 리오 틴토의 운영 전문성과 재무 건전성을 아카디움의 1급 자산 및 기술 역량과 결합합니다.
아카디움 리튬의 주주들은 주당 5.85달러 현금을 받게 됩니다. 이번 인수는 다리 대출 시설을 통해 자금을 조달하며, 이후 장기 부채로 대체될 예정입니다. 거래 완료 후 아카디움 리튬의 주식은 NYSE와 ASX에서 상장 폐지됩니다.
Rio Tinto a finalisé son acquisition de 6,7 milliards de dollars de Arcadium Lithium (NYSE: ALTM), qui sera renommée Rio Tinto Lithium. Cette acquisition positionne Rio Tinto comme un leader mondial dans les matériaux de transition énergétique et un producteur majeur de lithium.
La nouvelle division lithium vise à augmenter sa capacité à plus de 200 000 tonnes par an d'équivalent carbonate de lithium (LCE) d'ici 2028. La fusion combine l'expertise opérationnelle et la solidité financière de Rio Tinto avec les actifs de niveau 1 et les capacités techniques d'Arcadium.
Les actionnaires d'Arcadium Lithium recevront 5,85 dollars en espèces par action. L'acquisition sera financée par un prêt relais, qui sera remplacé par un financement à long terme. Après la finalisation de la transaction, les actions d'Arcadium Lithium seront radiées de la NYSE et de l'ASX.
Rio Tinto hat seine Übernahme von 6,7 Milliarden Dollar für Arcadium Lithium (NYSE: ALTM) abgeschlossen, die in Rio Tinto Lithium umbenannt wird. Die Übernahme positioniert Rio Tinto als globalen Marktführer in Materialien für den Energiemarkt und als bedeutenden Lithiumproduzenten.
Die neue Lithium-Abteilung zielt darauf ab, die Kapazität bis 2028 auf über 200.000 Tonnen pro Jahr an Lithiumcarbonatäquivalent (LCE) zu erweitern. Die Fusion kombiniert die operative Expertise und finanzielle Stärke von Rio Tinto mit den Tier-1-Assets und technischen Fähigkeiten von Arcadium.
Die Aktionäre von Arcadium Lithium erhalten 5,85 Dollar in bar pro Aktie. Die Übernahme wird durch eine Brückenfinanzierung finanziert, die durch langfristige Schulden ersetzt wird. Nach Abschluss der Transaktion werden die Aktien von Arcadium Lithium sowohl von der NYSE als auch von der ASX abgezogen.
- Creation of a world-class lithium business alongside iron ore, aluminium and copper operations
- Significant capacity expansion to 200,000 tonnes/year LCE by 2028
- Access to Tier 1 lithium assets
- Projected higher EBITDA and operating cash flow
- Substantial $6.7B debt burden for acquisition financing
- Integration risks between operations
- Execution risk for planned capacity expansion
Insights
Rio Tinto's $6.7 billion acquisition of Arcadium Lithium represents a strategic positioning in the energy transition materials sector. Arcadium shareholders will receive
The transaction transforms Rio Tinto into a major lithium producer with one of the world's largest lithium resource bases. The company plans to scale lithium carbonate equivalent (LCE) production to over 200,000 tonnes annually by 2028, positioning it to capitalize on growing demand for battery materials.
From a financial perspective, Rio Tinto is funding the acquisition through bridge loans, with plans to refinance with long-term debt. This leveraged approach indicates confidence in the lithium segment's future cash generation potential despite recent lithium price volatility.
For Arcadium shareholders, the deal provides immediate liquidity and eliminates exposure to ongoing operational and market risks in the lithium sector. The cash transaction structure, rather than a stock component, suggests Rio Tinto preferred maintaining full control over the strategic direction of the combined lithium operations without diluting existing Rio Tinto shareholders.
The merger consolidates significant lithium assets under Rio Tinto's management, potentially improving operational efficiencies through scale and shared expertise while accelerating development timelines for Arcadium's project pipeline.
This acquisition establishes Rio Tinto as a formidable player in the lithium market, diversifying its portfolio beyond traditional mining strongholds in iron ore, aluminum, and copper. By integrating Arcadium's assets with its existing Rincon lithium project, Rio creates a comprehensive lithium division with complementary technologies and geographic diversification.
The 200,000 tonnes LCE production target by 2028 would position Rio Tinto among the world's leading lithium producers. This scale provides significant advantages in negotiating supply agreements with battery manufacturers and automakers who increasingly seek secure, long-term supply relationships with major producers.
The transaction's timing is notable amid lithium's price correction from 2022 highs. Rio is acquiring these assets at a more reasonable valuation than would have been possible during peak lithium euphoria, demonstrating counter-cyclical investment strategy. This positions Rio to capture significant upside when lithium markets inevitably tighten with accelerating EV adoption.
For the broader lithium sector, this acquisition continues the consolidation trend as major miners absorb specialized lithium producers. Rio's financial strength will accelerate development timelines for Arcadium's projects that might otherwise have faced capital constraints as a standalone entity.
The combined entity benefits from Rio's established ESG frameworks and stakeholder management experience, potentially mitigating permitting and social license challenges that have plagued some lithium developments. The emphasis on "respecting local communities" and "minimizing environmental impacts" indicates recognition of these factors as critical to project advancement.
The acquisition establishes Rio Tinto as a global leader in the supply of energy transition materials and as a major lithium producer, with one of the world’s largest lithium resource bases. Rio Tinto Lithium aims to grow the capacity of its Tier 1 assets to over 200 thousand tonnes per year of lithium carbonate equivalent (LCE) by 2028. Complementary technologies and geographies offer compelling value driven by accelerating volume growth in a rising market, projecting significantly higher EBITDA and operating cash flow in the coming years.
Rio Tinto Chief Executive Officer Jakob Stausholm said: “Today 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, operational and project development experience with Arcadium’s Tier 1 assets, technical and commercial capabilities, we are creating a world-class lithium business which sits alongside our leading iron ore, aluminium and copper operations.
“We believe we are well-positioned to deliver the materials needed for the energy transition while maintaining our focus on respecting local communities, minimising environmental impacts and delivering value for shareholders and other stakeholders.”
Arcadium Lithium shareholders will receive total cash consideration of
In connection with the completion of the transaction, 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), respectively.
Forward Looking Statements
This announcement (including information incorporated by reference in this announcement), oral statements made regarding the Transaction, and other information published by Arcadium Lithium, Rio Tinto or any member of the Rio Tinto Group contain statements which are, or may be deemed to be, "forward looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the US Securities Exchange Act of 1934. Such forward looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and on numerous assumptions regarding the business strategies and the environment in which Rio Tinto, any member of the Rio Tinto Group or the enlarged group following the Transaction ("Enlarged Group") shall operate in the future and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements.
The forward looking statements contained in this announcement relate to Rio Tinto, any member of the Rio Tinto Group or the Enlarged Group's future prospects, developments and business strategies, the ability to fully realize the anticipated benefits of the acquisition, and other statements other than historical facts. In some cases, these forward looking statements can be identified by the use of forward looking terminology, including the terms "believes", "estimates", "will look to", "shall look to", "would look to", "plans", "prepares", "anticipates", "expects", "is expected to", "is subject to", "budget", "scheduled", "forecasts", "synergy", "strategy", "goal", "cost-saving", "projects" "intends", "may", "will", "shall", or "should" or their negatives or other variations or comparable terminology. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances and should be considered in light of various important factors, such as those set forth in Rio Tinto's filings with the SEC, including Rio Tinto's Annual Report on Form 20-F for the fiscal year ended December 31, 2023, which was filed with the SEC on February 23, 2024, and Rio Tinto's Annual Report on Form 20-F for the fiscal year ended December 31, 2024, which was filed with the SEC on February 20, 2025. Neither Arcadium Lithium or any of Rio Tinto or any member of the Rio Tinto Group, nor any of their respective associates or directors, officers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward looking statements in this announcement shall actually occur. Given these risks and uncertainties, potential investors should not place any reliance on forward looking statements.
Specifically, statements of estimated cost savings and synergies relate to future actions and circumstances which, by their nature involve, risks, uncertainties and contingencies. As a result, the cost savings and synergies referred to may not be achieved, may be achieved later or sooner than estimated, or those achieved could be materially different from those estimated. Due to the scale of the Enlarged Group, there may be additional changes to the Enlarged Group's operations. As a result and given the fact that the changes relate to the future, the resulting cost synergies may be materially greater or less than those estimated.
The forward looking statements speak only at the date of this announcement. All subsequent oral or written forward looking statements attributable to any member of the Rio Tinto Group or Arcadium Lithium Group, or any of their respective associates, directors, officers, employees or advisers, are expressly qualified in their entirety by the cautionary statement above.
Arcadium Lithium, the Rio Tinto Group and Rio Tinto expressly disclaim any obligation to update such statements other than as required by law or by the rules of any competent regulatory authority, whether as a result of new information, future events or otherwise.
Notice to ASX/LSE
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FAQ
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