Rio Tinto moots acquisition of Arcadium Lithium

British-Australian mining giant Rio Tinto has proposed to acquire lithium miner Arcadium Lithium regarding a potential acquisition of the global supplier of lithium chemical.

Arcadium, a newly founded mining company, has mining operations in Australia and downstream projects in the US, China, Japan and the UK. 

Both Arcadium and Rio Tinto confirmed the proposal but said it is non-binding and that there is no certainty that talks will lead to any deal or any agreement that would lead to a definitive transaction.

Besides the operating assets, Arcadium has various ongoing development projects in Argentina and Canada that can increase the miner’s production capacity.

Arcadium Lithium also said its current focus is on its strategic projects aimed at achieving significant growth.

Reports citing sources with direct knowledge of the matter said the two sides have been in talks during the LME Week conference in London, adding that Rio Tinto could be making an offer soon.

Some reports also said while talks are ongoing, it may not necessarily lead to a deal that would make Rio the third-largest producer of the metal used for making battery for electric vehicles.

Arcadium supplies most of its lithium chemical production to Asian markets while the company is a global supplier. The company operates in 9 countries and employs around 2,400 people. 

NYSE-listed Arcadium is estimated to have a market valuation of $4 billion to $6 billion.