Rio Tinto has completed its $6.7 billion acquisition of Arcadium Lithium in the U.S. The Royal Court of Jersey approved the deal on March 5, officially making Arcadium Lithium a part of Rio Tinto Lithium. This acquisition also brings the Rincon lithium project into Rio Tinto’s growing portfolio.
Rio Tinto’s Big Bet on Arcadium Lithium
- With this acquisition, Rio Tinto aims to grow the capacity of its Tier 1 assets to over 200 thousand tonnes per year of lithium carbonate equivalent (LCE) by 2028.
Furthermore, it expects strong growth, higher EBITDA, and improved cash flow in the coming years. It will deploy advanced technologies and its strong global hold to boost its market presence in the lithium sector.
Explaining more, Rio Tinto Chief Executive Officer Jakob Stausholm said,
“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. 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.”
As part of the agreement, Arcadium Lithium shareholders will receive $5.85 per share. To fund the purchase, Rio Tinto is using a bridge loan facility, which it plans to replace with long-term debt financing.
Following the acquisition, Arcadium Lithium’s shares and CHESS Depositary Receipts (CDIs) will be delisted from the New York Stock Exchange (NYSE) and the Australian Securities Exchange (ASX).
Lithium: The Power Player in Rio Tinto’s Future
The global shift toward electric vehicles (EVs) is fueling demand for lithium and other battery minerals. Rio Tinto expects lithium to become a crucial part of its portfolio, contributing more than 10% of its earnings (EBITDA) by 2033.
Other than Acradium Lithium, Rio Tinto invested $2.5 billion in the Rincon project in Argentina, which was approved last year in December 2024.
This expansion will increase the site’s annual capacity to 60,000 tonnes of battery-grade lithium carbonate. Additionally, it also includes a 3,000-tonne starter plant and a larger 57,000-tonne facility.
Construction is set to begin in mid-2025, after all permit approvals. After a three-year ramp-up, full production is expected by 2028. The Rincon mine will operate for 40 years while maintaining a low-cost position in the industry.
Navigating the Lithium Storm
The ongoing decline in lithium prices has sparked strong industry reactions. Some mining companies are delaying new projects, while others are cutting costs to stay profitable. Smaller lithium miners are feeling the most pressure. Without strong financial backing, many are struggling to survive. Some have even halted operations or are seeking mergers to stay afloat.
Notably, major producers like Albemarle and SQM plan to cut production, hoping to prevent further price drops and stabilize the market.
However, with these two massive lithium deals, Rio Tinto is consolidating its position in the global lithium market. Notably, the Acardium acquisition occurred amid an excess supply and significantly lower prices since their peak in 2022.
Despite battery advancements, lithium remains crucial, especially in China and Europe, where EV adoption is rising. Long-duration storage may boost demand, but alternative technologies could compete.
Rio Tinto’s lithium expansion plans support its sustainable mining strategy. Let’s discover how the mining giant is mitigating mining emissions.
Rio Tinto’s Net Zero Goals
Rio Tinto has set ambitious targets to cut Scope 1 and 2 emissions by 50% by 2030 (compared to 2018 levels) and to achieve net-zero emissions by 2050. Its latest sustainability report revealed:
- 2024 gross Scope 1 and 2 emissions: 30.7 Mt CO2e
- 2024 emissions reduction: 3.2 million tonnes of CO2e through renewable energy contracts
- Projected additional reductions by 2030: 3.6 million tonnes per year
To reach these goals, Rio Tinto has signed major renewable power purchase agreements and invested in solar and wind energy projects.
Additionally, the company is committing $143 million in Western Australia to develop BioIron™, an innovative ironmaking process that could slash CO2 emissions by up to 95% compared to traditional blast furnace methods.
Roadmap to a Greener Future
Rio Tinto’s comprehensive strategy to achieve its 2030 emissions target includes transitioning to renewable electricity and reducing process heat emissions at its alumina refineries. A key priority is cutting emissions at its Pacific Aluminium operations, particularly at the Boyne and Tomago smelters.
The company is also advancing other sustainability initiatives:
- Richards Bay Minerals: Expanding renewable energy contracts
- Queensland Alumina Limited (QAL): Improving alumina processing efficiency
Expanding the Use of Carbon Credits
To meet its 2030 net emissions target, Rio Tinto plans to use high-quality carbon credits from nature-based solutions. These credits will be capped at 10% of the company’s 2018 baseline emissions.
Most of these credits will come from Australian Carbon Credit Units (ACCUs), supporting compliance with the country’s Safeguard Mechanism. Rio Tinto remains committed to transparency in its emissions reporting. The company will clearly distinguish between its gross operational emissions and net emissions while also disclosing the volume and type of carbon credits used.
Advancing Carbon Capture and Mineralization Technologies
Rio Tinto is actively developing innovative ways to capture and store carbon emissions from fossil fuel use. In 2024, the company focused on identifying the most effective methods to capture low-concentration CO2 from aluminum smelters’ flue gas.
This effort includes adapting direct air capture for higher CO2 levels and modifying point-source technologies for lower concentrations, though both approaches remain in early development stages.
In early 2025, Rio Tinto partnered with Hydro to evaluate carbon capture technologies for aluminum emissions. Additionally, its collaboration with Carbfix is in the pipeline. They plan to begin CO2 mineralization at the ISAL site by 2028.
Meanwhile, at the Tamarack project in Minnesota, Rio Tinto recently completed a 1,137-meter exploratory well to assess the mineralization potential of local rock formations.
By investing in sustainable solutions and advanced technologies, the company is paving the way for a low-carbon future. Lastly, when the market rebounds, Rio Tinto will be ready to meet rising demand with a stronger and more diverse lithium portfolio.
