Mining giant Rio Tinto is in talks to buy US lithium producer Arcadium
This is a photo of a Rio Tinto mining helmet taken on June 2, 2020.
Aaron Bunch | Getty Images
The world’s second largest mining company Rio Tinto expressed interest in acquiring US lithium producer Arcadium, the two companies confirmed in separate statements on Monday.
No specific financial details were disclosed. Rio Tinto said there was no certainty that any transaction would be agreed.
Arcadium Lithium’s Australian-listed shares jumped more than 42% in early trading on Monday.
The move comes as miners seek to secure minerals essential to the global energy transition.
Saul Kavonic, head of energy research at MST Marquee, told CNBC that Rio Tinto has been waiting for a lithium downturn to pursue M&A that could give it a world-scale lithium division .
“Ultimately, Rio Tinto only wants to get into the lithium space if they become a top 3 producer,” he told CNBC via email.
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