11 Best Lithium and Battery Stocks To Invest In

3. Rio Tinto Group (NYSE:RIO)

Number of Hedge Fund Holders: 30

Rio Tinto Group (NYSE:RIO) is a global mining and metals company involved in sectors like copper, aluminum, diamonds, and lithium. It is set to expand its presence in the lithium market with the acquisition of Arcadium Lithium plc. On October 9, Rio Tinto announced an all-cash deal to acquire Arcadium at $5.85 per share, totaling approximately $6.7 billion.

Arcadium Lithium is a fast-growing, vertically integrated producer of lithium chemicals, with an annual production capacity of 75,000 tonnes of lithium carbonate equivalent. The company, which is a major supplier to Tesla, plans to more than double its production capacity by 2028.

In addition to lithium mining, Rio Tinto’s (NYSE:RIO) joint venture with Sumitomo Metal Mining improves Rio’s position in the copper (another essential metal for EVs) and gold sectors, especially with the development of the Winu project. Rio Tinto announced on December 4 that the company has reached a Term Sheet agreement for a joint venture on the Winu copper-gold project in Western Australia with Sumitomo Metal Mining (SMM). SMM will pay $399 million for a 30% stake, with $195 million upfront and $204 million based on milestones. The companies will also explore further collaboration in copper, base metals, and lithium.

The Winu project, discovered by Rio Tinto (NYSE:RIO) in 2017, is seen as a low-risk, long-life copper-gold deposit with potential for expansion. Rio Tinto will continue to manage the project, with a pre-feasibility study for an initial processing capacity of 10 million tonnes per annum set for completion in 2025. Rio Tinto and SMM aim to finalize definitive agreements by mid-2025 and continue collaborating with the Nyangumarta and Martu Traditional Owners.