SYDNEY — Rio Tinto's $6.7 billion acquisition of Arcadium Lithium is forcing experts to reassess their outlook for the lithium market, with some saying the landmark deal could trigger a wave of consolidation in the sector as prices fall.
The landmark deal comes as lithium prices have fallen more than 80% in the past 18 months due to oversupply at Chinese and African mines and slower adoption of electric vehicles. Prices have stabilized in recent weeks, with the global average price for lithium carbonate hovering around $10,500 a tonne, according to S&P.