This is a photo of a Rio Tinto mining helmet, taken on June 2, 2020.
Aaron Bunch | Getty Images
The world’s second largest miner Rio Tinto The two companies issued separate statements on Monday confirming their interest in acquiring U.S. lithium producer Arcadium.
No financial details were disclosed. Rio Tinto said it was unsure whether it would agree to any deal.
Arcadium Lithium’s market capitalization currently stands at $3.31 billion, according to LSEG. The company’s Australian-listed shares rose more than 42% in early trading on Monday.
If the deal goes through, Rio Tinto will become one of the largest lithium suppliers, behind Albemarle and SQM. The measure comes as mining companies seek to secure essential minerals needed for the global energy transition.
Saul Kavonic, head of energy research at MST Marquee, told CNBC that Rio Tinto has been waiting for a downturn in the lithium industry in order to pursue mergers and acquisitions that would turn it into a world-scale lithium sector.
“Ultimately, Rio Tinto just wants to be among the top three producers in the lithium industry,” he told CNBC via email.
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