What's Happening?
Rio Tinto has secured a 53.9% majority interest in Nemaska Lithium, a Canadian lithium company, following equity investments by both Rio Tinto and the Government of Québec through Investissement Québec. The Government of Québec retains a 46.1% share. This acquisition allows Rio Tinto to manage Nemaska Lithium and integrate its processes to establish a comprehensive lithium business in Canada. The focus will be on the lithium hydroxide plant in Bécancour, Québec, which was 60% complete by the end of 2025. The Government of Québec plans to invest up to $200 million, while Rio Tinto is set to invest over $300 million in 2026 to further develop its lithium operations. The acquisition of Arcadium in March 2025, which gave Rio Tinto a 50% stake in Nemaska Lithium, was pivotal
in this development. The Bécancour plant is expected to begin commissioning activities in 2026, with initial production anticipated in 2028.
Why It's Important?
This development is significant as it positions Rio Tinto to become a major player in the lithium market, which is crucial for the production of batteries used in electric vehicles and renewable energy storage. The investment in Nemaska Lithium aligns with global trends towards sustainable energy solutions and the increasing demand for lithium. For the U.S., this could mean a more stable supply of lithium, potentially reducing dependency on other countries for this critical resource. The expansion of Rio Tinto's operations in Québec also highlights the strategic importance of Canadian resources in the global supply chain for electric vehicles and renewable energy technologies.
What's Next?
Rio Tinto plans to continue its investment in the Bécancour plant, with commissioning activities scheduled for 2026 and initial production expected by 2028. The company is also evaluating the Whabouchi mine and its wholly owned Galaxy mine to determine the best supply strategy for the plant's spodumene needs. This evaluation is expected to conclude in the first half of 2026. The ongoing development of these projects will likely attract attention from stakeholders in the electric vehicle and renewable energy sectors, as well as from policymakers interested in sustainable resource management.
