Rio Tinto to set up lithium unit after Arcadium acquisition
Rio Tinto is reportedly set to establish an independent lithium unit following its $6.7 billion acquisition of Arcadium Lithium.
The acquisition was announced in October last year and is expected to close in July 2025. Rio Tinto highlights the importance of Arcadium’s engineering expertise.
Arcadium employs approximately 2,400 people in nine countries and generates 84% of its revenue from Asia, the center of global demand for lithium.
This positions Arcadium for growth as electric vehicle projects ramp up, particularly those supported by the US Inflationary Relief Act.
Arcadium shareholders approved the sale last month, according to reports Reuters. The acquisition is Rio Tinto’s biggest deal in more than a decade.
Rio Tinto plans to gradually absorb Arcadium due to its reluctance to integrate an entire company.
The move is aimed at retaining talent and protecting the value of the deal, sources familiar with the matter said.
Rio Tinto Lithium, the new entity planned to be formed once the transaction is completed, will manage the $2.5 billion Rincon project in Argentina.
However, Rio CEO Jacob Stausholm told employees: “Once the transaction is complete, it will not include the Jadar lithium project in Serbia to ensure we are laser focused on a successful integration.”
The acquisition positions Rio Tinto as the world’s third-largest producer of lithium, a critical component for batteries in electric vehicles, at a time of rising demand.
Leading iron ore and copper producer Rio Tinto is currently expanding into processing high-quality, low-carbon minerals that are essential for the energy transition.
The mining division has faced approval challenges in Serbia but is expanding lithium production at Rincon and has been selected to compete in a joint venture with Chilean state miner Codelco.
In December, Rio Tinto produced its first ton of lithium through direct lithium extraction at Rincon, a method used to accelerate production.
Although this is a big step, the process took three years to reach. The mineralization produces diamonds, boron and titanium dioxide.
“Rio Tinto to establish lithium unit post Arcadium acquisition” was originally created and published by Mining technologyA trademark owned by GlobalData.
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