What Rio Tinto’s $6.7bn Acquisition Means for Sustainability
Electrification is key to sustainable development, but critically relies on the availability and use of batteries.
Known for their reliability and long life, lithium-ion batteries are a common choice for electric vehicles, storage of renewable energy and stabilisation of electrical grids.
Rio Tinto has completed its US$6.7bn acquisition of Arcadium Lithium, now known as Rio Tinto Lithium.
Jakob Stausholm, CEO at Rio Tinto, says: “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.
“We believe we are well-positioned to deliver the materials needed for the energy transition while maintaining our focus on respecting local communities, minimising environmental impacts and delivering value for shareholders and other stakeholders.”
Through this deal, Rio will gain access to lithium mines, processing facilities, deposits and customers including General Motors, Tesla and BMW.
Rio Tinto Lithium
Arcadium was born from the merger of Livent and Allkem in January 2024, bringing together a specialty chemicals firm and a lithium mining leader.
It was the third largest lithium producer in the world and has now become Rio Tinto Lithium.
Jakob said on LinkedIn: “Lithium is a cornerstone mineral of the energy transition, and this transaction represents a critical step towards establishing ourselves as a global leader in this market.
“Together, Rio and Arcadium have the scale, financial strength, technical, operational and commercial expertise to create the world’s best lithium business.”
What goes into a battery?
Lithium-ion batteries, of course, require lithium – but there are many other raw materials that go in their components.
Graphite, cobalt, manganese, nickel, copper and aluminium are the key raw materials of a lithium-ion battery.
Lithium finds its main use in the battery’s cathode as lithium metal oxides or phosphates, and contributes to the electrolyte solution with lithium salts.
Copper and aluminium are essential for the anode components, facilitating effective energy transmission within the battery.
Bringing lithium into Rio’s portfolio positions the company well to support the transition to cleaner energy.
Why are batteries needed?
It’s not just TV remotes that need batteries – across industries, equipment from trucks and trains to hair dryers and leaf blowers can put them to use.
Battery energy storage systems are used to enhance modern electricity grids, so even electricity used at home can be supplied in this way.
Batteries allow energy to be stored in chemical form and used later when it is needed.
With renewable energy sources like wind and solar that don’t produce consistent amounts of power, batteries can fill in when energy generation is low.
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