Mining giant Rio Tinto is in negotiations to acquire Acadia Lithium, a lithium producer listed on the New York Stock Exchange, as its latest attempt to establish a foothold in this rapidly growing market.
In a statement on Monday, Rio Tinto stated that it has made a takeover offer to Acadia Lithium, but is uncertain whether an agreement can be reached. Rio Tinto mentioned that it will not comment further unless it needs to provide investors with updates.
Rio Tinto hopes to reshape its business to produce more metals. The company expects that these metals will meet the demand amid significant growth in global clean energy technologies. Currently, most of the profits of this global second-largest miner come from steel raw material iron ore.
Lithium has always been one of Rio Tinto's growth focus areas. The company predicts a sharp increase in lithium demand in the next 10 years, as lithium plays an important role not only in electric vehicles but also in giant batteries that can release electricity into the grid when customers need it.
In January this year, Philadelphia-based Livent and Australia's Allkem merged to establish Acadia Lithium, currently valued at around $3 billion.