Rio Tinto has agreed to buy U.S. based Arcadium Lithium for $6.7 billion, it said on Wednesday, a deal that will catapult it to become the world's third largest miner of the metal used in electric vehicle batteries.

Anglo-Australian Rio Tinto UK:RIO has agreed to buy Arcadium Lithium ALTM in an all-cash deal for $5.85 a share expected to close next year. Arcadium Lithium was created in January 2024 after Livent and Allkem merged.

Rio Tinto Group’s takeover offer for Arcadium Lithium Plc has won approval, boosting the world’s second-biggest miner’s bid to become a major producer of the crucial battery material.