Arcadium shareholders approve sale to Rio Tinto
Shares of Arcadium Lithium rose about 7% in extended trading after the company said that about 98% of its shareholders had voted in favor of the sale.
Arcadium Lithium Plc will suspend or delay two of its four expansion projects as the global market for the battery metal faces a supply glut and prolonged price slump.
The lithium producer plans to pause investment in its Galaxy project in Canada and is exploring the possibility of bringing in a partner for the project, Arcadium said in its second-quarter earnings release on Tuesday.
The company also has revised the timing of two lithium carbonate projects at Argentina’s Salar del Hombre Muerto. Rather than execute both at the same time, the projects will now be completed sequentially.
The moves will cut Arcadium’s capital spending by an estimated $500 million over the next two years, according to the earnings release. The company has no plans to delay development of its Nemaska Lithium project in Canada.
Arcadium still sees long-term demand for the metal intact, but “the market is clearly indicating that the industry does not need to add supply at the same pace as previously expected,” chief executive Paul Graves said in the release.
(By Yvonne Yue Li)
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