Rio Tinto's $6.7 billion acquisition of lithium producer Arcadium is a risky bet on future electric vehicle demand, considering the recent slowdown in the EV market.
Rio Tinto recently struck a deal to acquire Arcadium Lithium for $6.7 billion. The acquisition represents a significant wager by the miner on EV growth in the futurebut it comes as EV demand has slackened off and lithium demand has followed. It could be a $6.7-billion mistake. Then again, it could be a long-term play for dominance in a key sector of the energy system of the future.
The markets are Europe and the United States, and basically, EV demand is being driven up globally by the one single market where they have turned into a big feature of the local fleet China. These developments have not stopped forecasters from continuing with their bullish forecasts. S&P Global has become the latest to sound a note of optimism against a reality background that is not really conducive to such a sentiment.
Lithium Electric Vehicles (Evs) EV Demand Lithium Price Acquisition Arcadium Lithium Energy Transition Battery Subsidies
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