The deal establishes Rio Tinto as a global leader in the supply of energy transition materials and as a major lithium producer, with one of the world’s largest lithium resource bases, the company said. Rio Tinto Lithium aims to grow the capacity of its assets to over 200,000 t/y of lithium carbonate equivalent (LCE) by 2028.

Rio Tinto CEO Jakob Stausholm said: “Together, we are accelerating our efforts to source, mine and produce minerals needed for the energy transition. By combining Rio Tinto’s scale, financial strength, operational and project development experience with Arcadium’s Tier 1 assets, technical and commercial capabilities, we are creating a world-class lithium business which sits alongside our leading iron ore, aluminium and copper operations.”

“We believe we are well-positioned to deliver the materials needed for the energy transition while maintaining our focus on respecting local communities, minimizing environmental impacts and delivering value for shareholders and other stakeholders,” Stausholm added.

Arcadium Lithium shareholders will receive total cash consideration of $5.85 for each share.