It is a real gamble in the current situation. The Anglo-Australian mining group Rio Tinto formalized, on Wednesday, October 9, the purchase of the American lithium giant Arcadium Lithium for an amount of 6.7 billion dollars (approximately 6.1 billion euros). An important operation, while the market for the star metal of electric batteries has been stagnant for several months. In fact, the price of white gold has plummeted and no longer has anything to do with the peaks reached during the post-Covid recovery. A ton of lithium is now trading at around $10,000, a price more than 80% lower than at the beginning of 2023.
With this acquisition, Rio Tinto managers demonstrate that they still believe in the future of lithium and in the electrification of industrial uses, particularly automobiles. However, the global electric vehicle market has suddenly slowed, especially in Europe, in recent months, and the Chinese mining groups that dominate the lithium sector are reducing their production, due to a lack of demand, after having boosted it strongly for several years. years.
“Rio Tinto is confident in the long-term prospects of lithium, with a compound annual growth rate of more than 10%. (…) It is expected until 2040, which will lead to a supply deficit »the company says in its press release about the purchase. Jakob Stausholm’s group is even convinced of getting a good deal, believing that “This countercyclical acquisition comes at a time when the market presents substantial long-term upside potential”.
From extraction to refining
The Anglo-Australian giant, specialized in traditional industrial metals (steel, aluminum, copper), has until now had little presence in the strategic lithium market. The acquisition of Arcadium places it among the world’s largest mineral producers, along with the Chinese groups Tianqi and Ganfeng, or the American Albemarle and the Chilean SQM. “The acquisition of Arcadium Lithium is an important step in Rio Tinto’s long-term strategy, which is creating a world-class lithium business, alongside our leading aluminum and copper businesses, to provide the materials needed for the energy transition. »explains Stausholm.
With 2,400 employees worldwide, Arcadium has “an annual production capacity (…) 75,000 tons of lithium carbonate equivalent [le composé chimique intégré dans les batteries]with expansion plans to more than double capacity by the end of 2028”indicates Rio Tinto.
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