Rio Tinto Expands Control in Nemaska Lithium to Drive Quebec Battery Metal Projects
Rio Tinto Group has significantly increased its investment in Canada's Nemaska Lithium, securing a majority stake of 54% as part of a strategic push to enhance lithium output in Quebec. According to sources familiar with the private negotiations, the mining giant executed multiple transactions to elevate its ownership, while Investissement Quebec, the provincial government's financial arm, retains a minority share and is set to contribute US$200 million to support the company's growth initiatives.
Strategic Investments and Expansion Plans
The global mining company initially acquired a 50% interest in Nemaska through its US$6.7 billion purchase of Arcadium Lithium Plc, which concluded approximately one year ago. Building on this foundation, Rio Tinto anticipates investing around US$300 million in 2026 specifically for its Quebec lithium operations, with intentions to allocate larger sums in subsequent years. This funding will advance key projects, including the Galaxy hard rock lithium development in the James Bay region, an open-pit mine projected to operate for 15 to 20 years.
Lithium, a critical component for energy-dense batteries, is central to these efforts. The new capital injection will facilitate the completion of a facility in Becancour, Quebec, designed to convert spodumene concentrate into lithium hydroxide—a vital material for electric vehicle battery production. Operations at this plant are scheduled to commence in 2028, aligning with Nemaska's existing long-term supply agreement with Ford Motor Co., established in 2023.
Future Outlook and Production Goals
In a strategic update released in December, Rio Tinto outlined ambitious plans to spend US$1 billion annually over three years on lithium growth initiatives in Canada and Argentina. The company aims to more than double its lithium production capacity, targeting approximately 200,000 metric tonnes per year of lithium carbonate by 2028. The Becancour facility is expected to contribute about 32,000 metric tonnes annually to this total.
Despite these developments, Rio Tinto has declined to comment publicly on its ownership details and investment strategies. The company noted that both the Galaxy project and Nemaska's Whabouchi mine in northern Quebec remain under review, indicating ongoing evaluations of their feasibility and impact.
This move underscores Rio Tinto's commitment to strengthening its position in the competitive battery metals market, leveraging Quebec's rich resources to meet growing global demand for sustainable energy solutions.
