CITIC Securities: Acquisition of lithium mining company Arcadium by Rio Tinto is expected to boost market confidence.

Jinshi data on October 10th, CITIC Securities research report pointed out that Rio Tinto announced the acquisition of the global leading lithium mining company Arcadium Lithium at a price of 6.7 billion US dollars, a 90% premium over Arcadium’s Closing Price on October 4th. Rio Tinto has strong financial strength and multinational operating experience. It is expected that there will be certain synergy effects after the merger. This premium acquisition shows the optimistic attitude of overseas mining companies towards lithium prices, which will bring more confidence to the market. The acquisition of lithium assets will also increase industry concentration, and there is limited downside space for lithium prices. Recently, lithium prices have moderately pumped, and the market sentiment has driven the undervalued lithium sector to rebound.