Rio Tinto to establish lithium unit post Arcadium acquisition

Rio Tinto is reportedly set to launch a separate lithium division after completing its $6.7 billion acquisition of Arcadium Lithium.

The acquisition was announced last October and is expected to close by July 2025. It underlines Rio Tinto’s value in Arcadium’s engineering expertise.

Arcadium employs about 2,400 people in nine countries, with 84% of its revenue coming from Asia, the global center of demand for lithium.

This gives Arcadium a boost as electric car projects grow, especially those supported by the US Inflation Reduction Act.

Arcadium shareholders approved the sale last month, it said Reuters:. The acquisition is Rio Tinto’s biggest deal in a decade.

Because of its unfamiliarity with integrating an entire company, Rio Tinto plans to gradually absorb Arcadium.

The approach aims to retain talent and preserve the value of the deal, according to sources familiar with the matter.

A new entity, Rio Tinto Lithium, which is expected to be formed after the deal closes, will manage the $2.5 billion Rincon project in Argentina.

However, it will not include the Jadar lithium project in Serbia to “ensure that we have a laser focus on successful integration after the deal closes,” Rio CEO Jakob Stausholm told employees.

The acquisition makes Rio Tinto the world’s third-largest producer of lithium, a key component in electric vehicle batteries amid growing demand.

Rio Tinto, a leading producer of iron ore and copper, is now transforming into a refiner of the high-quality, low-carbon minerals needed for the energy transition.

Its minerals division has faced approval challenges in Serbia, but is expanding lithium production at Rincon and is in the running for a partnership with Chile’s state-owned Codelco.

In December, Rio Tinto celebrated a milestone at Rincon by producing its first ton of lithium using direct lithium mining, a technique aimed at speeding up production.

Despite this milestone, the process took three years to achieve.Mineral separation also produces diamonds, boron and titanium dioxide.

“Rio Tinto to set up lithium unit after Arcadium acquisition” was originally created and published by Mining technologyTrademark owned by GlobalData.

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