What's Happening?
Rio Tinto has acquired a majority interest in Nemaska Lithium, a Canadian lithium company, by securing a 53.9% stake. The Government of Québec holds the remaining 46.1% share. This acquisition is part of Rio Tinto's strategy to establish an integrated lithium business in Canada. The company plans to invest over $300 million in 2026 to further develop its lithium operations in the region, focusing on the lithium hydroxide plant in Bécancour, Québec. Construction at the site is already 60% complete, with engineering work finished. The Government of Québec is also contributing up to $200 million through equity subscriptions. 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 as a major player in the North American lithium market, which is crucial for the growing electric vehicle (EV) industry. The investment in Nemaska Lithium aligns with global trends towards sustainable energy and the increasing demand for lithium-ion batteries. By establishing a fully integrated lithium supply chain in Québec, Rio Tinto aims to enhance its product offering and support the long-term development of Nemaska Lithium. This move could potentially boost the local economy and create jobs, while also contributing to the global supply of lithium, a critical component in EV batteries.
What's Next?
Rio Tinto will continue to evaluate the Whabouchi mine and its wholly owned Galaxy mine to determine the best supply strategy for the Bécancour plant's spodumene needs. This evaluation is expected to conclude in the first half of 2026. The company will also focus on completing the construction and commissioning of the Bécancour plant, with production slated to start in 2028. The partnership with the Government of Québec and the significant financial investments indicate a strong commitment to advancing the lithium industry in the region.
