Arcadium Lithium announced on Monday that its shareholders overwhelmingly approved a $6.7 billion acquisition by Australian mining giant Rio Tinto.
The deal, which received 98% shareholder approval, sent Arcadium’s shares up by about 7% in extended trading.
Set to close in mid-2025, the acquisition will elevate Rio Tinto to the position of the world’s third-largest lithium producer, trailing only Albemarle and SQM.
The deal values Arcadium at $5.85 per share in cash, a near 90% premium over its closing price on October 4, when news of the potential acquisition first surfaced.
Through the transaction, Rio Tinto will acquire Arcadium’s lithium assets, including mines, processing facilities, and deposits across Argentina, Australia, Canada, and the United States. These operations come with a high-profile customer base, featuring Tesla, BMW, and General Motors.
Despite the strong shareholder approval, Arcadium is grappling with legal disputes. A group of shareholders has filed lawsuits alleging misrepresentation, concealment, and negligence related to the takeover. The company disclosed these challenges in a regulatory filing earlier this month.
The acquisition positions Rio Tinto to capitalize on the growing demand for lithium, a key component in electric vehicle batteries and renewable energy storage systems.
By expanding its footprint in key lithium-producing regions, the Australian miner is strategically aligning itself with the future of clean energy markets.
If completed as planned, this deal will significantly enhance Rio Tinto’s global presence in the lithium market, strengthening its role in the energy transition supply chain.
