This is Rio Tinto, which bought Arcadium for US$6.7 billion and began to control the Fénix project in Catamarca and Olaroz, in Jujuy. In addition, he already had other investments in the country.
In the last few years, a commercial movement took shape that not only installs a new great player in the lithium in Argentinabut reconfigures the scheme players in the industry globally. Rio Tintoone of the most important Australian mining companies in the world bought the main producer of “white gold” in the country: Arcadium Lithium.
The existence of conversations prior to the dissemination of the operation had already generated great expectations in the mining and financial sector. The approach had been confirmed by both companies and triggered a 30% rise in Arcadium Lithium shares on the New York Stock Exchange, reflecting the importance that a transaction of this type would have for the market.
Arcadium Lithium currently operates two of the main lithium extraction projects in the country: Olaroz in Jujuy and Fénix in Catamarca.
Río Tinto’s move is part of a global expansion strategy that the company is promoting in the lithium sector.
The Reuters agency highlighted that the transaction includes a series of assets throughout Americaas well as a strong customer base, including automotive companies Tesla, BMW y General Motors.
Investments in lithium in Argentina
Rio Tinto has recently invested in the development of its own project in the province of Salta, known as Rincón.
There he is building a pilot plant with a production capacity of 3,000 tons of lithiumbut the long-term plan is to establish a large-scale plant that can produce 50,000 tons.
This project will require a investment of USD 2,000 million and will be protected under the Large Investment Incentive Regime (RIGI)a measure that facilitates large capital outlays in Argentina.
For its part, Arcadium Lithium, which in 2023 emerged as a result of the merger of Stay and stay togethercurrently operates two of the main lithium extraction projects in the country: Olaroz in Jujuy and Fénix in Catamarca. These projects are a central part of Argentina’s lithium production capacity.
The acceleration in extraction has positioned the country as the fourth global producer and has led it to represent 15% of mining exports in 2023in contrast to 3.6% in 2020. The consolidation of Arcadium under the control of Río Tinto would, without a doubt, an impact on the dynamics of production and export of the resource.
An operation of US$6.7 billion
The acquisition was closed by US$6.7 billion and grants Río Tinto access to lithium mines in Argentina, Australia, Canada and the United Statesin addition to key processing facilities for its growth in the sector.
Canaccord analysts speculate that this purchase could give the Australian mining company control around 10% of world supply lithium chemicals for 2030which underlines the strategic importance of the operation.
At the local level, the acquisition has implications for the lithium industry in Argentina. The projects underway, combined with growing foreign investment, could boost the economic development of the regions involved and position the country as a benchmark in the industry despite the drop in the price that the resource has suffered throughout the year.
In the last two years, the country tripled its capacity to produce lithium carbonateaccording to the latest data from the Argentine Chamber of Mining Companies (CAEM). The four plants that are in operation will be added to one dozen projects that will begin to operate in the coming months.