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 on Wednesday struck a deal to acquire Arcadium Lithium for $6.7 billion, as the global miner extends its operations in another commodity needed for the energy transaction.