Mining large Rio Tinto in talks to purchase U.S. lithium producer Arcadium

The world’s second-largest miner Rio Tinto expressed interest in acquiring U.S. lithium producer Arcadium, the two companies confirmed in separate statements on Monday.

No financial specifics were disclosed. Rio Tinto said that there is no certainty that any transaction will be agreed to.

Arcadium Lithium’s market value currently stands at $3.31 billion, according to data from LSEG. The company’s Australian-listed shares jumped over 42% in early Monday trade.

If the deal goes through, Rio Tinto would become one of the largest suppliers of lithium, trailing only Albemarle and SQM. This 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 had been waiting for a lithium downturn in order to pursue M&A that can deliver it a world scale lithium division.

“Ultimately, Rio Tinto only wanted to play in the lithium space if they were going to be a top 3 producer,” he told CNBC via email.

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