Rio Tinto has officially completed its $6.7 billion acquisition of Arcadium Lithium plc, marking a significant step in its strategy to become a dominant player in the burgeoning lithium market. Following the Royal Court of Jersey's sanction of the Scheme of Arrangement on March 5, Arcadium Lithium will now operate as Rio Tinto Lithium, incorporating the promising Rincon lithium project.

This comes after the merger faced some serious shareholder drama in December last year, when Arcadium shareholders filed lawsuits in four US courts alleging the board of directors “withheld information and misled the shareholders into accepting a less-than-optimal deal”. They alleged that the 90% premium deal promised to them paled in comparison to Arcadium’s May 2023 valuation of $10.6 billion.

The final shareholder approval vote was casted on December 23, 2025, the outcome of which was not publicly disclosed.

Road Ahead

Rio Tinto Lithium has ambitious plans to scale its Tier 1 assets, targeting a production capacity exceeding 200,000 tonnes of lithium carbonate equivalent (LCE) by 2028. The company anticipates substantial growth in EBITDA and operating cash flow, driven by increasing market demand and the integration of complementary technologies and geographical assets.

The roots of this transformative merger lie in the strategic imperative to capitalize on the soaring demand for lithium, a critical component in electric vehicle batteries and energy storage solutions. Rio Tinto, a mining giant with a diverse portfolio, recognized the need to expand its presence in future-facing commodities. Arcadium Lithium, formed by the merger of Allkem and Livent, possessed prime lithium assets and technical expertise, making it an attractive target.

Negotiations between the two companies commenced in late 2023, driven by a shared vision of creating a world-class lithium enterprise. Rio Tinto's financial strength and operational prowess, coupled with Arcadium Lithium's specialized knowledge and resource base, presented a compelling synergy. The deal, valued at $6.7 billion, was structured to provide Arcadium Lithium shareholders with $5.85 in cash for each share held.

Rio Tinto's Chief Executive Officer, Jakob Stausholm, expressed his enthusiasm for the merger, stating, "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."

With the completion of 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), respectively. This marks the end of an era for Arcadium Lithium as an independent entity and the beginning of its integration into Rio Tinto's global operations.