Rio Tinto enters the lithium market with a multi-billion acquisition.

The mining and metals giant Rio Tinto recently secured a majority stake in Arcadium Lithium through a $5.7 billion acquisition, making it the world's third-largest lithium producer. The $865 million price, a 90% premium over the last closing price, underscores Rio's strategy to shift its focus from New Zealand to the highly demanded, low-carbon resources important for the electrification of mobility. Rio Tinto CEO Jakob Stausholm foresees a long-term supply shortage ahead, which could last until the end of the decade. With new lithium deposits in Argentina, Australia, Canada, and the USA, Rio Tinto could not only position itself well but also maintain long-standing partnerships with leading automotive manufacturers such as Tesla, BMW, and General Motors. Although lithium prices are currently pressured by a slowdown in electric vehicle sales and China's high production rates, the timing of the acquisition proves to be perfect. By integrating Arcadium's resources, Rio Tinto can leverage combined experience and capacities while maintaining its notable investment readiness of $10 billion for 2025 and 2026. In contrast, the BHP Group's attempt to acquire Anglo American for $49 billion failed due to British regulatory authorities, highlighting the intense competition and regulation in the mining industry. With the anticipated takeover in mid-2025, Rio Tinto is not only focusing on market expansion but also on a forward-looking strategy in the field of renewable energy and electromobility.