Rio’s Lithium Plans for 2025
Lithium had a challenging year in 2024. Prices were down due to oversupply and increased production from countries like China. However, Rio Tinto saw an opportunity and made a big move by acquiring Arcadium Lithium for $US6.7 billion.
This deal, announced in October 2024, involves Rio buying Arcadium for $US5.85 per share, a significant premium on Arcadium’s stock price. Shareholders recently approved the acquisition, and it is expected to be finalized by mid-2025.
The acquisition allows Rio to expand its lithium production globally. Both companies have operations in Argentina, where Rio is developing the Rincon lithium project, complementing Arcadium’s assets there. Rio’s expansion of the Rincon project, to the tune of $2.5 billion, shows its commitment to becoming a major player in the lithium market.
With these strategic moves, Rio Tinto is set to become the world’s third-largest lithium supplier, after Albemarle and Sociedad Química y Minera de Chile S.A. (SQM). The company’s focus in 2025 will be on building its lithium capabilities, creating jobs, and contributing to the clean energy transition.
So, it’s safe to say that Rio Tinto has big plans for the future when it comes to lithium. Stay tuned for more updates on this exciting development!
