Lithium is a key component in electric-vehicle batteries and Rio Tinto is diversifying away from its core products to prepare for the energy transition.

Rio Tinto will be acquiring Arcadium in an all-cash $6.7 billion deal that would cement it as one of the world's top lithium producers.

Rio Tinto said Wednesday it will acquire U.S. lithium producer Arcadium in an all-cash transaction valued at approximately $6.7 billion, or $5.85 per share. The consideration amount