Arcadium deal could power Rio Tinto's entry into lithium supplier big league

Reuters

Arcadium deal could power Rio Tinto's entry into lithium supplier big league

2024 10월 8, 오후 1:38 GMT

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Oct 8 (Reuters) -Rio Tinto RIO.L, RIO.AX is in talks to buy lithium producer Arcadium Lithium ALTM.N, pursuing a deal that could make the Anglo-Australian miner the third-largest producer of the electric-vehicle battery metal.

Rio's Rincon project in Argentina is due to start producing later this year, while its Jadar project in Serbia could take at least two years to secure all the necessary permits.

There is an expectation for more deals among lithium producers as long-term prospects for EV demand remain positive despite several global automakers scaling down their targets in the short term.

Below is a list of the top lithium producers in the world:

1. Albermale

Albemarle ALB.N is the world's largest lithium producer, with a market cap of about $12 billion. It runs the only producing lithium mine in North America, and also has operations in Chile and Western Australia.

It holds joint ventures in Australia with Mineral Resources MIN.AX at the Wodgina mine and with Tianqi Lithium 002466.SZ at the Greenbushes mine.

In 2023, it produced 39,000 tons of lithium metal.

2. Sociedad Química y Minera de Chile

Chile's SQM SQMA.SN is the second-largest lithium producer, with a market cap of $11.43 billion. China's Tianqi Lithium 002466.SZ owns about a fifth of the company.

SQM last year produced around 165,500 tons of lithium hydroxide and lithium carbonate, according to its annual report.

3. Ganfeng Lithium

China's Ganfeng Lithium 002460.SZ has a market cap of $9.37 billion. It also owns a 6.16% stake in Australia's Pilbara Minerals PLS.AX. It has operations in Western Australia, Argentina, Mexico and China.

4. Tianqi Lithium

Tianqi Lithium 002466.SZ, which has a market cap of $8.11 billion, has operations in Australia, Chile and China.

5. Mineral Resources

Australia's Mineral Resources MIN.AX has a market cap of $7.12 billion and is the world's biggest miner of hardrock spodumene. It holds stakes in several developers such as Global Lithium GL1.AX, Delta Lithium DLI.AX and Wildcat Resources WC8.AX.

Per last year's annual report, the company shipped 847,000 dry metric tons (dmt) of spodumene concentrate.

6. Pilbara Minerals

Pilbara Minerals PLS.AX has a market cap of $6.34 billion and operates the Pilgangoora mine in Western Australia. In August, it made a A$559.9 million ($378.21 million) bid for smaller peer Latin Resources LRS.AX to gain access to its Brazilian operations.

In 2023, it produced 620,147 dmt of total spodumene concentrate.

7. Arcadium Lithium

Arcadium Lithium ALTM.N has a market cap of $3.31 billion and was formed by the merger of Allkem and Livent on Jan. 4, 2024. It has mining assets in Argentina and Australia, and downstream conversion assets in the U.S., China, Japan and UK.

As of 2023, both the companies together produced around 29,661 tons of lithium carbonate, and Allkem alone produced 239,312 dmt of spodumene concentrate.

8. Liontown Resources

Liontown Resources LTR.AX has a market cap of $1.45 billion, and operates in Western Australia.

In September, it shipped its first lithium output of 11,855 wet metric tons of spodumene concentrate.

($1 = 1.4804 Australian dollars)

Reporting by Seher Dareen and Tanay Dhumal in Bengaluru; Editing by Sriraj Kalluvila

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