Rio Tinto Ltd has completed its acquisition of Arcadium Lithium plc for US$6.7 billion, following the approval of the Scheme of Arrangement by the Royal Court of Jersey on 5 March. Arcadium Lithium is now a wholly owned subsidiary of Rio Tinto and will be rebranded as Rio Tinto Lithium, incorporating the Rincon lithium project.
The acquisition strengthens Rio Tinto’s position as a global supplier of energy transition materials and a major lithium producer, adding one of the world’s largest lithium resource bases to its portfolio. Rio Tinto Lithium plans to expand its Tier 1 asset capacity to more than 200,000 tonnes per year of lithium carbonate equivalent (LCE) by 2028. The company expects to leverage complementary technologies and geographic synergies to drive volume growth in a rising lithium market, anticipating substantial increases in EBITDA and operating cash flow.
“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," Rio Tinto CEO Jakob Stausholm said.
“We believe we are well-positioned to deliver the materials needed for the energy transition while maintaining our focus on respecting local communities, minimising environmental impacts and delivering value for shareholders and other stakeholders.”
Under the terms of the deal, Arcadium Lithium shareholders will receive US$5.85 per share in cash. Rio Tinto is financing the transaction through its existing bridge loan facility, which it intends to replace with long-term debt financing.
With the completion of the transaction, 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).
Rio to invest $1.8 billion in Brockman Syncline 1 iron ore project
Meanwhile, Rio will invest $1.8 billion to develop the Brockman Syncline 1 (BS1) mine project, extending the operational life of the Brockman region in the West Pilbara, Western Australia, and supporting the company’s iron ore production.
The project has secured all necessary State and Federal Government approvals and has been developed in consultation with the Puutu Kunti Kurrama and Pinikura (PKKP) Traditional Owners and the Muntulgura Guruma Traditional Owners.
Rio Tinto Iron Ore chief executive Simon Trott said: “Brockman 4 produced 43 million tonnes of iron ore in 2024. Securing this project extends the life of the Brockman hub. This is good for our business, good for Western Australia and good for the Australian economy.”
BS1, a large-scale investment within the Brockman region—encompassing Brockman 4 and Greater Nammuldi—will have the capacity to process up to 34 million tonnes per annum (Mtpa) of iron ore using existing infrastructure. First ore is now scheduled for 2027, a year earlier than previously anticipated.
Construction is set to commence this year, including the development of a new primary crusher, overland conveyor, a Non-Process Infrastructure precinct, and a temporary construction camp. The project is expected to create approximately 1,000 jobs during construction and sustain a workforce of about 600 once operational.
BS1 is part of a broader suite of replacement projects, collectively supporting an annual capacity of approximately 130Mtpa in the Pilbara. Meanwhile, the Western Range project is over 90% complete, with first production expected in the first half of 2025. The Hope Downs 1 and West Angelas sustaining projects are progressing through approvals, while a pre-feasibility study continues for Rhodes Ridge, targeting an initial capacity of up to 40Mtpa and first ore by 2030.