(Reuters) -Rio Tinto, has made an approach to buy lithium miner Arcadium, the two parties said in separate statements on Monday, without revealing any financial details.
“The approach is non-binding and there is no certainty that any transaction will be agreed to or will proceed,” Rio said in its statement.
Reuters exclusively reported on Friday that the companies had been holding talks, and Arcadium could be valued at $4 billion to $6 billion or higher.
Arcadium’s market cap was $3.31 billion at Friday’s close.
Rio’s approach to Arcadium comes as miners are eager to secure supplies of critical minerals needed to power the global energy transition.
If consummated, the deal would make Rio one of the world’s largest suppliers of lithium behind Albemarle (NYSE:) and SQM. Demand for the ultralight metal is forecast to surge later this decade from growth in lithium-ion battery use in electric vehicles and consumer electronics.