Rio Tinto has agreed to acquire Arcadium Lithium for $6.7 billion, offering a 90% premium to the stock's recent closing price. The acquisition positions Rio Tinto among the top lithium producers, a crucial component for electric vehicle batteries. With growing demand for lithium, the company aims to shift away from iron ore, focusing on renewable energy materials. The deal comes as lithium prices have dropped over 80% from their peak, with the market still adjusting to fluctuating supply and demand.
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00:00It's Benzinga, and here's what's on the block.
00:02Rio Tinto has agreed to acquire Arcadium Lithium for $6.7 billion, offering a 90% premium to
00:09the stock's recent closing price.
00:11The acquisition positions Rio Tinto among the top lithium producers, a crucial component
00:16for electric vehicle batteries.
00:18With growing demand for lithium, the company aims to shift away from iron ore, focusing
00:22on renewable energy materials.
00:25The deal comes as lithium prices have dropped over 80% from their peak, with the market
00:29still adjusting to fluctuating supply and demand.
00:32For all things money, visit Benzinga.com.