The taxonomy will include both low-emitting “green” activities and “transition” activities that enable decarbonization.

Their innovation will address the stability gap between natural and synthetic graphite.

Acquiring Arcadium makes Rio Tinto one of the world's largest lithium producers.

“We feel quite comfortable that we have not bought a lithium company at the top of the cycle right now. We had to pay a fair price, and that’s what we’re paying.”

The company says its ALE technology can unlock sources of lithium previously considered uneconomical and inaccessible.

So far the market is working in Rio's favor, as plunging lithium prices since January have stymied Arcadium's growth plans.

A total of four companies -- three focused on lithium and one on copper -- have been named the recipients of the funding.