Oliver Bunic/Bloomberg via Getty Images
Key Takeaways
-
Shares of Arcadium Lithium rose in premarket trading on Monday after it confirmed it had been approached by mining giant Rio Tinto about a takeover.
-
A report last week that Rio Tinto is considering acquiring a lithium miner sent some industrial stocks higher.
-
Demand for lithium has soared in recent years as it is a crucial component of batteries that power everything from laptops to electric vehicles.
Arcadium-lithium (ALTM) shares rose 30% in premarket trading on Monday after it confirmed it had been approached by mining giant Rio Tinto (RIO) about an acquisition.
In respective statements, the companies said it is possible that no deal will result 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 a takeover in the lithium mining sector sent a number of industry stocks, including Arcadium, higher last Friday.
Rio Tinto wants to increase its efforts in lithium
Rio Tinto has been trying to ramp up 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 mobile phones.
The company’s plan to build Europe’s largest lithium mine in Serbia has drawn resistance from residents, which CEO Jakob Stausholm has attributed to a “well-organized” disinformation campaign.
Arcadium shares rose 30% to $4.02 an hour before the opening bell, while Rio Tinto American Depositary Receipts (ADRs) fell 0.5% lower to $69.36.
Read the original article on Investopedia.
