The all-cash transaction, first announced in October, is set to significantly bolster Rio Tinto’s position in the global lithium market.
The deal offers Arcadium shareholders $5.85 per share, a 90% premium over the company’s closing price on October 4, 2024. Both companies’ boards have approved the acquisition, which is on track to close by mid-2025, pending final regulatory clearances and other conditions.
Arcadium’s operations span key geographies, including Argentina, Australia, Canada, China, Japan, the U.S., and the U.K. The acquisition would grant Rio Tinto access to Arcadium’s portfolio of “long-life, low-cost” lithium projects, a critical step in securing a steady supply of the key mineral used in batteries for electric vehicles and renewable energy storage. 
Rio Tinto plans to leverage its financial resources and operational scale to develop Arcadium’s portfolio more fully. Antitrust approvals or waivers have already been granted in several major markets, including Australia, Canada, China, the U.K., and the U.S. The U.K. has also cleared the deal under its investment screening process.
Arcadium CEO Paul Graves praised the shareholder approval as a turning point for the company. “Today’s vote of support by our shareholders confirms our shared belief that with Rio Tinto, we will be a stronger global leader in lithium chemicals production,” he said. Graves emphasized that the partnership will enhance the company’s ability to develop its assets and contribute to the clean energy transition, benefitting customers, employees, and communities.
The transaction positions Rio Tinto as one of the world’s largest suppliers of lithium at a time when global demand for the mineral continues to rise sharply. By securing Arcadium’s diverse portfolio of assets, Rio Tinto aims to meet increasing demand for lithium-driven technologies while strengthening its role in the energy transition.
In a separate development earlier this year, Arcadium completed its acquisition of the lithium metal business of Li-Metal in an all-cash deal, further consolidating its position in the sector.
