Diversified mining major Rio Tinto has officially completed its $6.7-billion acquisition of Arcadium Lithium. 

The deal, sanctioned by the Royal Court of Jersey on Wednesday, integrates Arcadium Lithium into Rio Tinto, with the newly acquired entity set to operate as Rio Tinto Lithium.

The acquisition strengthens Rio Tinto’s foothold in the energy transition materials market, adding one of the world’s largest lithium resource bases to its portfolio. With the inclusion of Arcadium Lithium’s tier-one assets and the Rincon lithium project, Rio Tinto Lithium aims to ramp up production capacity to over 200 000 t/y of lithium carbonate equivalent (LCE) by 2028. 

The company expects to benefit from technological synergies and geographic diversification, which it projects will drive substantial increases in earnings before interest, taxes, depreciation, and amortisation (EBITDA) and operating cash flow in the coming years.

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

Stausholm added that Rio Tinto is “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".

Under the terms of the agreement, Arcadium Lithium shareholders will receive $5.85 a share in cash. Rio Tinto is financing the deal through an existing bridge loan facility, which it intends to replace with long-term debt financing.

Following the completion of the transaction, Arcadium Lithium’s shares and CHESS depositary receipts will be delisted from the NYSE and the ASX.