Arcadium Lithium (ALTM) Investor Update summary

Strategic rationale and transaction overview

• Rio Tinto will acquire Arcadium Lithium in an all-cash deal at $5.85 per share, a 90% premium to the prior closing price, valuing Arcadium at approximately $6.7 billion, unanimously approved by both boards and expected to close mid-2025, funded from existing liquidity.

• The acquisition positions the combined group as a global leader in lithium, critical for the energy transition and battery markets, with the #1 global resource base and a compelling growth pipeline.

• Arcadium brings a world-class, vertically integrated lithium portfolio, advanced technology, and strong customer relationships, including with Tesla, Panasonic, Ford, BMW, and Toyota.

• The acquisition is structured via a Jersey scheme of arrangement and subject to shareholder, court, and regulatory approvals, with proxy materials and voting instructions to be provided.

• The transaction is expected to accelerate Arcadium’s growth pipeline and enhance long-term shareholder value, supporting the clean energy transition.

Market positioning, growth, and capital allocation

• Lithium demand is forecast to more than double by 2030, with a market deficit expected by the end of the decade and double-digit growth until 2040.

• Arcadium’s assets include 75,000 tonnes annual lithium carbonate equivalent capacity, with plans to grow to 295,000 tonnes by 2028 and targeted capacity of 373,000+ tonnes LCE.

• The combined group will focus on low-cost, scalable assets in Argentina and Canada, leveraging complementary expertise and economies of scale.

• Arcadium’s growth capital expenditure is expected to represent about 5% of Rio Tinto’s group capex for 2025-2026, with CapEx not expected to materially alter overall group guidance.

• The company remains committed to disciplined capital allocation, maintaining a robust balance sheet, single A rating, and a dividend policy of 40-60% of underlying earnings.

Technology, synergies, and operational integration

• Arcadium’s leadership in direct lithium extraction (DLE) and downstream processing complements Rio Tinto’s development capabilities, with investments in next-generation technologies like LIOVIX®.

• Synergies are expected from combining DLE know-how, infrastructure, and project delivery, enabling rapid expansion and de-risking of new projects.

• The integration will focus on retaining key talent and leveraging both organizations’ operational expertise, especially in Argentina and Quebec.

• The combined group aims to establish world-class lithium hubs, benefiting from shared technology and customer relationships, and enhancing ESG leadership.

• No specific tax advantages are assumed in the deal, but new Argentine legislation (RIGI) is expected to provide investment protections.