Rio Tinto Clears U.S. Hurdle for Arcadium Lithium Acquisition

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Researched by Industrial Info Resources (Sugar Land, Texas)--As the makeup of the lithium sector shifts through mergers, acquisitions and joint ventures, Rio Tinto (NYSE:RIO) (London, England) is on its way to acquiring lithium miner and chemical maker Arcadium Lithium plc (NYSE:ALTM) (Shannon, Ireland) in a US$6.7 billion all-cash deal that was floated last year. The Committee on Foreign Investment in the United States (CIFUS) has approved the acquisition, putting the deal on track to close later this year, although a few more approvals are needed from other countries.

Arcadium shareholders approved the deal late last month, and within three weeks CIFUS has given a green light for the transaction. News of the approval caused Arcadium's share price to spike 8% in yesterday morning's trading. The deal will make Rio Tinto the world's third-largest lithium miner.

Although several countries in addition to the U.S. have approved the merger, investment screening approvals are still needed in Australia, Canada and Italy. However, despite these pending approvals, Arcadium said it expects the transaction to close toward the middle of this year.

Both Arcadium and Rio Tinto have active capital lithium projects in Argentina. Arcadium's related projects in the Jujuy province of northwest Argentina could kick off this summer and would entail constructing lithium brine wells at the northeast and southeast corners of a reserve estimated to hold more than 3 million tons of lithium. Plans call for the northeast wells to operate for the first nine years, followed by the southeast wells for a subsequent nine years.

The extracted lithium would then go to a processing plant that Arcadium plans to construct in the area. The mine and plant would be powered by a natural gas-fired powerhouse that would include seven internal combustion engines, each rated at 1.5 megawatts (MW) for a combined 10.5 MW of power generation. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can learn more by viewing the related project reports.

Later this year, Arcadium will complete initial construction of its Sal da Vida project in Argentina's Catamarca province, which is expected to produce 15,000 tons per year of lithium carbonate over a 40-year mine life. Subscribers can click here to learn more about the project.

Rio Tinto appears to be active at two sites in Argentina's Salta and Catamarca provinces. In Catamarca, the company is expanding production of lithium carbonate from 30,000 to 40,000 tons per year. The expanded production is expected to begin ramping up in early 2026. Work on a further expansion to lift production to 70,000 tons per year of lithium carbonate could begin later this year. Subscribers can learn more by viewing the reports on the first and second phases of the expansion.

In the Salta province, Rio Tinto plans to expand production of a 3,000-ton-per-year pilot-scale operation by constructing a 25,000-ton-per-year processing plant that is expected to begin operating in 2028. A second 25,000-ton-per-year expansion could be completed in 2029, followed by a potential 7,000-ton-per-year expansion to bring total production capacity to 60,000 tons per year of lithium carbonate by 2030. Subscribers can learn more by viewing the related project reports.

Both Arcadium and Rio Tinto have active lithium facilities in North America, and Rio Tinto continues to pursue a grassroot project in Quebec. Arcadium's oldest facility is located in Bessemer City, North Carolina, where it has been operating since 1954. Arcadium calls the site its "largest and most diverse manufacturing facility," [w]here we produce lithium hydroxide, butyllithium, high purity lithium metal, specialty organics and several other inorganic products." Subscribers can learn more by viewing the plant profile.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).