Rio pays premium multiple for Arcadium in biggest deal since 2007
“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.”
“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.”
Rio's offer is at the high end of expectations representing a premium of 90% to Arcadium’s closing price on October 4.
A total of four companies -- three focused on lithium and one on copper -- have been named the recipients of the funding.
Based on the successful completion of development objectives, both parties intend to commercialize the jointly enhanced silicon anodes for EV lithium-ion batteries.
A potential return of heavyweight investment flows to the sector could be as powerful a price driver as physical supply shortages.
A price floor system might be uniquely effective by insuring against the likelihood of Chinese overproduction.
EV sales have slowed for reasons including a lack of charging infrastructure and concerns about resale values.
Despite gold's price slump, strong copper and iron ore prices lifted MINING.COM's ranking of the world's 50 most valuable miners to a new record high of $1.35 trillion.
Indian trade minister Piyush Goya described the agreement as a memorandum of understanding but did not provide further details on its scope.
The report highlights that critical energy transition metals could face supply deficits this decade — some as early as this year.