Rio Tinto approaches Arcadium Lithium about possible purchase

Rio Tinto has confirmed it has approached global lithium chemicals producer Arcadium Lithium with an eye toward buying the company.

"Rio Tinto today confirmed that it has made an approach to Arcadium Lithium regarding a potential acquisition of Arcadium Lithium by Rio Tinto," the mining giant said.

"The approach is non-binding and there is no certainty that any transaction will be agreed to or will proceed.

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"Rio Tinto will not make further comment until or unless an update is appropriate."

Arcadium Lithium has outlets around the world, including in Australia, Argentina, Canada, China, Japan, the UK and the US.

A purchase could signify a major step for Rio Tinto into the renewable energy market.

Lithium is widely used to make batteries for electric cars and mobile phones, among other things.

Rio Tinto has a market capitalisation value of about $173 billion, compared to about $4.9 billion for Arcadium Lithium.

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