So far the market is working in Rio's favor, as plunging lithium prices since January have stymied Arcadium's growth plans.

Rio Tinto is in talks to buy lithium producer Arcadium Lithium, pursuing a deal that could make the Anglo-Australian miner the third-largest producer of the electric-vehicle battery metal. Rio's Rincon project in Argentina is due to start producing later this year,

Rio Tinto said it has agreed to a $6.7 billion takeover of Arcadium Lithium, propelling it into the ranks of the top producers of a key commodity used in batteries for electric vehicles.

Rio Tinto said on Wednesday it will acquire Arcadium Lithium in an all-cash transaction, valued at $6.7 billion, in a deal that will make it the world's third-largest lithium producer. Rio Tinto will acquire the United States-based lithium producer for $5.

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.

Rio Tinto said on Wednesday it will acquire Arcadium Lithium in an all-cash transaction, valuing the latter at $6.7 billion. Rio Tinto will acquire the United States-based lithium producer for $5.85 per share,