:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2161520987-9cc01026feaf4624bc8965b0da869c2e.jpg)
Key Takeaways
- Shares of Arcadium Lithium jumped in premarket trading Monday after it confirmed that it has been approached by mining giant Rio Tinto about an acquisition.
- A report last week that Rio Tinto was considering acquiring a lithium miner sent a number of industry stocks higher.
- Demand for lithium has surged in recent years, as it is a critical part of batteries that power everything from laptops to electric vehicles.
Arcadium Lithium (ALTM) shares surged 30% in premarket trading Monday after it confirmed that it has been approached by mining giant Rio Tinto (RIO) about an acquisition.
In respective statements, the companies said it’s possible no deal will come from the approach and that they will not comment further unless an update is warranted.
A report in The Australian that Rio Tinto was considering an acquisition in the lithium mining space sent a number of industry stocks, including Arcadium, higher last Friday.
Rio Tinto Looking To Increase Lithium Efforts
Rio Tinto has looked to increase its efforts in mining lithium, which is a key ingredient in batteries used to power electric vehicles (EVs), as well as personal electronics such as laptops and cellphones.
The company’s plan to build Europe’s largest lithium mine in Serbia has received pushback from residents, which Chief Executive Officer (CEO) Jakob Stausholm has attributed to a “well-organized” disinformation campaign.
Arcadium shares were up 30% at $4.02 an hour before the opening bell, while Rio Tinto American depositary receipts (ADRs) edged 0.5% lower to $69.36.