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Released March 10, 2025 | SUGAR LAND
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Written by Paul Wiseman for Industrial Info Resources (Sugar Land, Texas)--Rio Tinto (NYSE:RIO) (London, England) has completed the acquisition of Arcadium Lithium, one of the world's largest lithium producers, after months of negotiations and permits.
The purchase will transform Rio Tinto into one of the largest lithium producers worldwide, with the capacity to grow its Tier 1 assets to more than 200,000 tons of lithium carbonate equivalent (LCE) per year by 2028.
"We believe we are well-positioned to deliver the materials needed for the energy transition while maintaining our focus on respecting local communities, minimising environmental impacts and delivering value for shareholders and other stakeholders," said Rio Tinto Chief Executive Officer Jakob Stausholm.
The transaction closed in early March for US$6.7 billion, during a time of instability in the lithium market.
Lithium prices have dropped in recent times from highs of more than US$7,000 per ton in 2022 to around US$10,000 per ton in March 2025. The collapse has been spurred by weaker demand for electric vehicles and a slowdown in the Chinese economy.
Despite the market's recent setbacks, the demand for the white metal is expected to grow in the next few years thanks to the transition to cleaner energies such as electric vehicles and battery storage systems.
The acquisition will expand Rio Tinto's lithium assets from its current Rincon project to the operating mines of Salar del Hombre Muerto and Olaroz in Argentina, as well as the Cauchari and Sal de Vida projects, both under development in Argentina. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project and Plant databases can click here for the Rincon project reports and here for the plant profile. Subscribers also can click here for the Salar del Hombre Muerto plant profile and here for the Olaroz plant profile. Finally, subscribers can click here for the Cauchari project reports and here for the Sal de Vida project reports.
The company also holds a 100% stake in spodumene concentrate mines in Australia and Canada.
Rio Tinto will also operate Arcadium's lithium processing plants in China, the U.S., Japan, Canada, and the U.K.
The mining company is already developing the Rincon project in Argentina. The mine is expected to have a capacity of 60,000 tons of battery-grade lithium carbonate per year. Rio Tinto has announced investments of US$2.5 billion to develop the asset and has applied to be part of the government's Incentive Regime for Large Investments (RIGI), which grants companies financial and legal benefits. For more information, see February 27, 2025, article - Rio Tinto Applies for Argentina's RIGI Benefit Scheme.
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 more than 200,000 current and future projects worth $17.8 Trillion (USD).
The purchase will transform Rio Tinto into one of the largest lithium producers worldwide, with the capacity to grow its Tier 1 assets to more than 200,000 tons of lithium carbonate equivalent (LCE) per year by 2028.
"We believe we are well-positioned to deliver the materials needed for the energy transition while maintaining our focus on respecting local communities, minimising environmental impacts and delivering value for shareholders and other stakeholders," said Rio Tinto Chief Executive Officer Jakob Stausholm.
The transaction closed in early March for US$6.7 billion, during a time of instability in the lithium market.
Lithium prices have dropped in recent times from highs of more than US$7,000 per ton in 2022 to around US$10,000 per ton in March 2025. The collapse has been spurred by weaker demand for electric vehicles and a slowdown in the Chinese economy.
Despite the market's recent setbacks, the demand for the white metal is expected to grow in the next few years thanks to the transition to cleaner energies such as electric vehicles and battery storage systems.
The acquisition will expand Rio Tinto's lithium assets from its current Rincon project to the operating mines of Salar del Hombre Muerto and Olaroz in Argentina, as well as the Cauchari and Sal de Vida projects, both under development in Argentina. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project and Plant databases can click here for the Rincon project reports and here for the plant profile. Subscribers also can click here for the Salar del Hombre Muerto plant profile and here for the Olaroz plant profile. Finally, subscribers can click here for the Cauchari project reports and here for the Sal de Vida project reports.
The company also holds a 100% stake in spodumene concentrate mines in Australia and Canada.
Rio Tinto will also operate Arcadium's lithium processing plants in China, the U.S., Japan, Canada, and the U.K.
The mining company is already developing the Rincon project in Argentina. The mine is expected to have a capacity of 60,000 tons of battery-grade lithium carbonate per year. Rio Tinto has announced investments of US$2.5 billion to develop the asset and has applied to be part of the government's Incentive Regime for Large Investments (RIGI), which grants companies financial and legal benefits. For more information, see February 27, 2025, article - Rio Tinto Applies for Argentina's RIGI Benefit Scheme.
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 more than 200,000 current and future projects worth $17.8 Trillion (USD).
