What's Happening?
Rio Tinto has acquired a majority stake in Nemaska Lithium, increasing its shareholding to 53.9%. This move allows Rio Tinto to assume direct management control of the lithium project, which includes a lithium hydroxide plant in Bécancour and the Whabouchi spodumene mine in the Eeyou Istchee James Bay region. The Quebec government retains the remaining 46.1% stake through Investissement Quebec. The acquisition follows equity investments by the partners since March 2025. Rio Tinto plans to apply its internal processes and standards across development, operations, sales, and marketing as it advances its lithium ambitions in Canada. The construction of the Bécancour lithium hydroxide plant is 60% complete, with commissioning activities scheduled
for 2026 and first production targeted for 2028. Additional funding has been committed by the partners, with the Quebec government investing up to $200 million and Rio Tinto investing over $300 million in 2026.
Why It's Important?
The acquisition of a majority stake in Nemaska Lithium by Rio Tinto is significant for the lithium industry in Canada and globally. It positions Rio Tinto as a key player in the battery materials sector, which is crucial for the growing electric vehicle market. The investment in Quebec's lithium resources aligns with Rio Tinto's strategy to expand its integrated lithium product offering and supports the long-term development of Nemaska Lithium. This move also highlights the potential for Canada to become a leader in future industries, particularly in the production of materials essential for renewable energy technologies. The increased investment and development in Quebec's lithium resources could lead to economic growth and job creation in the region.
What's Next?
Rio Tinto plans to continue developing its lithium business in Quebec, with commissioning activities for the Bécancour plant scheduled for 2026 and first production targeted for 2028. The company will apply its internal processes and standards to Nemaska Lithium's operations, aiming to enhance growth and performance. The Quebec government and Rio Tinto's additional funding commitments will support the advancement of the project. As the lithium market continues to grow, Rio Tinto's increased stake in Nemaska Lithium positions it to capitalize on the demand for battery materials, potentially influencing global supply chains and market dynamics.
