Lithium miner Arcadium confirms Rio Tinto takeover approach Reuters

(Reuters) – Rio Tinto has made an approach to buy lithium miner Arcadium, the two sides said in separate statements on Monday, without disclosing financial details.

“The approach is not binding and there is no certainty that any transaction will be agreed or proceed,” Rio said in its statement.

Reuters exclusively reported on Friday that the companies were in talks and Arcadium could be valued at between $4 billion and $6 billion or more.

Arcadium’s market capitalization was $3.31 billion at Friday’s close.

Rio’s approach to Arcadium comes as miners are eager to secure supplies of essential minerals needed to power the global energy transition.

If completed, the deal would make Rio one of the world’s largest lithium suppliers, behind Albemarle (NYSE:) and sq. Demand for the ultralight metal is expected to increase later this decade due to increased use of lithium-ion batteries in electric vehicles and consumer electronics.