A safety helmet with a “Rio Tinto” logo sits among trays of ore samples containing Jadarite mineral excavated over the years standing at the storage of Rio Tinto company in the western Serbian city of Loznica on April 5, 2024. – Rio Tinto released its draft environmental impact assessments on June 13, 2024, for a lithium mine project in Serbia that has been halted for more than two years after demonstrations accusing the Australian group of withdrawing information. According to Rio Tinto, the lithium reserves in Jadar, western Serbia, discovered in 2004, could annually produce 58,000 tonnes (63,934 tons) of lithium carbonate, 160,000 tonnes (176,370 tons) of boron acid, and 255,000 tonnes (281,089 tons) of sodium sulfate. (Photo by Andrej ISAKOVIC / Agence France-Presse)
SYDNEY, Australia — Shares in lithium producer Arcadium Lithium soared almost 50 percent in Sydney on Monday after mining giant Rio Tinto confirmed a potential acquisition of the US-based firm.
Rio Tinto said in a statement it had approached the company regarding the potential “non-binding” acquisition.
“There is no certainty that any transaction will be agreed to or will proceed,” it said.
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Arcadium shares surged 46 percent to their highest since June.
Rio Tinto and Arcadium Lithium said they would not comment further.
If the deal goes ahead, it would transform Rio Tinto into the world’s third-largest lithium supplier.
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However, the lithium industry is struggling with an oversupply and falling electric vehicle sales, pushing prices down and leading mines around the world to shut or scale back production.
Arcadium Lithium announced earlier this year it was mothballing a mine in Western Australia, citing low prices.
Australia is the world’s biggest supplier of lithium, which is used in a variety of products including hybrid and electric car batteries, laptops, and phones.