KEY POINTS
- 98 percent of Arcadium shareholders approved the $6.7 billion Rio Tinto deal.
- Rio Tinto will gain access to lithium assets across four countries.
- Legal challenges from some shareholders could impact the deal’s closure.
Arcadium Lithium shareholders overwhelmingly approved a $6.7 billion sale to Australian mining giant Rio Tinto, the company announced Monday. Approximately 98 percent of shareholders voted in favor of the deal, which values Arcadium shares at $5.85 each, nearly a 90 percent premium to the stock’s October 4 closing price when Reuters first reported the potential sale.
The agreement, expected to close by mid-2025, will elevate Rio Tinto to the position of the world’s third-largest lithium miner, trailing only Albemarle and SQM. Arcadium shares rose about 7 percent in extended trading following the announcement.
Rio Tinto gains access to key lithium assets
The acquisition will grant Rio Tinto access to Arcadium’s lithium mines, processing facilities, and deposits across Argentina, Australia, Canada, and the United States.
According to Reuters, this expanded portfolio also includes relationships with major automotive customers like Tesla, BMW, and General Motors, key players in the rapidly growing electric vehicle industry.
The deal represents a major step for Rio Tinto in strengthening its position in the lithium market, as demand for the metal continues to surge globally. Lithium is a critical component in batteries used for electric vehicles and renewable energy storage.
Legal challenges loom over the deal
Despite the strong shareholder support, Arcadium disclosed in a regulatory filing that some shareholders have filed lawsuits against the company, alleging misrepresentation, concealment, and negligence regarding the transaction.
While these legal hurdles could delay the process, Rio Tinto has expressed confidence in completing the deal on schedule. The company remains focused on leveraging Arcadium’s resources to meet the increasing demand for lithium and advance its sustainability initiatives.
The $6.7 billion acquisition underscores the growing competition among global mining companies to secure critical mineral assets, with Rio Tinto poised to play a significant role in the future of green technology.
