Bringing Rio Tinto's scale, development capabilities and financial strength to the Arcadium Lithium portfolio
Tier 1 assets
- Long mine lives
- ~130% capacity1 growth through 2028 focused in Rio Tinto’s existing geographies
Complementary capabilities
- Rio Tinto’s balance sheet strength to accelerate growth pipeline
- Proven DLE2 technology
- Project delivery and operatorship
Compelling economics
- Low cost, large, expandable
- High quality product to premium customers
- Maintaining our balance sheet strength in line with our Single A rating target
[1] Excludes Mt Cattlin. Data from Arcadium’s Investor Day 2024 guidance.
[2] DLE = Direct Lithium Extraction.
Transaction details
- Rio Tinto will acquire Arcadium Lithium in an all-cash transaction for US$5.85 per share.
- Represents a premium of 90% to Arcadium’s closing price of $3.08 per share on 4 October 2024, a premium of 39% to Arcadium’s volume-weighted average price since Arcadium was created on 4 January 2024, and values Arcadium’s diluted share capital at ~$6.7 billion.3
- Expected to close in mid-2025
- Unanimously approved by Boards of Rio Tinto and Arcadium Lithium.
- Subject to approval of Arcadium Lithium shareholders and the Royal Court of Jersey and receipt of customary regulatory approvals and other closing conditions.
- To be implemented by way of a Jersey scheme of arrangement
[3] Includes conversion of all outstanding convertible senior notes due 2025.
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.
Arcadium Lithium is an outstanding business today and we will bring our scale, development capabilities and financial strength to realise the full potential of its Tier 1 portfolio. This is a counter-cyclical expansion aligned with our disciplined capital allocation framework, increasing our exposure to a high-growth, attractive market at the right point in the cycle. We look forward to building on Arcadium Lithium’s contributions to the countries and communities where it operates, drawing on the strong presence we already have in these regions. Our team has deep conviction in the long-term value that combining our offerings will deliver to all stakeholders.”
Jakob Stausholm, Rio Tinto Chief Executive Officer
We are confident that this is a compelling cash offer that reflects a full and fair long-term value for our business and de-risks our shareholders’ exposure to the execution of our development portfolio and market volatility.
Arcadium Lithium is a leading global lithium producer with the widest offering of lithium chemical products and a world-class manufacturing network, backed by a broad technology portfolio and expertise in all aspects of the lithium value chain. This agreement with Rio Tinto demonstrates the value in what we have built over many years at Arcadium Lithium and its predecessor companies, and we are excited that this transaction will give us the opportunity to accelerate and expand our strategy, for the benefit of our customers, our employees, and the communities in which we operate.”
Paul Graves, Arcadium Lithium Chief Executive Officer