This is a photo of a Rio Tinto mining helmet taken on June 2, 2020.
Aaron Bunch | Getty Images
Rio Tinto, the world’s second-largest miner, has expressed interest in acquiring U.S. lithium producer Arcadium, the companies confirmed in separate statements on Monday.
Financial details were not disclosed. Rio Tinto said it was not certain whether any deal would be agreed.
According to LSEG data, Arcadium Lithium’s market value is currently $3.31 billion. The company’s Australian-listed shares soared more than 42% in early trading on Monday.
If the deal goes through, Rio Tinto will become one of the largest lithium suppliers after Albemarle and SQM. The move comes as mining companies seek to secure essential minerals for the global energy transition.
Saul Kavonic, head of energy research at MST Marquee, told CNBC that Rio Tinto was waiting for the lithium downturn to pursue M&A that could create a global lithium sector.
“Ultimately, Rio Tinto only wanted to be in the lithium space if it could become a top-three producer,” he told CNBC in an email.
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