Canada deepening its collaboration with global leader Rio Tinto to produce the world's greenest aluminum

The Government of Canada and Rio Tinto have signed a memorandum of understanding to strengthen Canada's low-carbon metals ecosystem by producing the world's greenest aluminum

SAGUENAY, QC, June 12, 2023 /CNW/ - Decarbonizing the production of critical minerals and metals is essential to achieve Canada's climate goals. To build a greener future, the Government of Canada is working with industry and supporting innovative sustainable production practices, as well as establishing a strong cleantech ecosystem in the country. And by strengthening our metals and minerals supply chains, Canada is continuing to secure good jobs, grow a resilient economy and ensure the long-term competitiveness of key industries across the country.

Today, the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, announced the signing of a partnership agreement with Rio Tinto aiming to implement a bold agenda for the company to strengthen its position as a leader in the production of green aluminum. This includes the construction of the first Western aluminum smelter in a decade, producing aluminum with some of the lowest carbon emissions in the world, as well as the industrial-scale deployment of its ELYSIS smelting technology across Rio Tinto Aluminium operations in Canada.

To cement its position as a leader in the production of green aluminum, Rio Tinto will invest Can$1.4 billion to expand its state-of-the-art aluminum smelter equipped with the company's low-carbon emission AP60 electrolysis technology at the Complexe Jonquière, in Saguenay. The project will create up to 1,000 jobs during the peak construction period, and about 100 permanent jobs will be maintained thanks to the new aluminum smelter.

Thanks to our clean energy, our strong innovation ecosystems and our workers' expertise, Canada already produces some of the world's greenest minerals and metals, in particular steel and aluminum. Canada is positioning itself as a leader in this sector as the global demand for the production of clean metals continues to grow, particularly for aluminum, which is used in the production of innovative technologies in a wide range of sectors, including cleantech, aerospace and advanced manufacturing. Through strategic partnerships with industry leaders like Rio Tinto, Canada is establishing itself as the green supplier of choice for sustainably produced aluminum and critical minerals.

Rio Tinto is Canada's leading metals and minerals producer, with a proven track record of success and a commitment to reducing carbon emissions across its operations. That is why the government has invested in ELYSIS Limited Partnership, a joint venture between Rio Tinto and Alcoa. Once fully developed and implemented, the ELYSIS technology could eliminate Canada's aluminum smelting carbon footprint. Another testament to its confidence in Rio Tinto, in October 2022, the government announced up to $222 million in funding to help Rio Tinto Fer et Titane advance its innovative BlueSmelting decarbonization technology and expand its production of critical minerals that are inputs to a range of advanced manufacturing applications, including electric vehicles.

The government's collaborative agreement with Rio Tinto also supports the objectives of the Canadian Critical Minerals Strategy, as it will explore opportunities for value-added mineral processing and materials manufacturing for Canadian technologies and industries, and also promote circular economy principles by capturing critical minerals from waste streams.

Today's announcement represents another significant step forward as the Government of Canada continues to position Canada for success with a cleaner, stronger and better-prepared economy—one that is competitive in a low-carbon world.

Quotes

"Canada has all it takes to be the global green supplier of choice. And that is why our government is collaborating with key industry actors like Rio Tinto to produce the world's greenest aluminum. By supporting the production of green metals, we ensure Canada will remain at the forefront of the economy of tomorrow. When economic benefits are paired with a commitment to developing green solutions, it's a win for our industry, our cleantech ecosystem and our workers."

– The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry

"Today marks an important milestone: the first major aluminum production project in North America in over a decade. This announcement brings us one step closer to the deployment of the first ELYSIS pots, which will make Quebec the leader in greenhouse gas-free aluminum production."

– Pierre Fitzgibbon, Quebec's Minister of Economy, Innovation and Energy

"This investment is aligned with our strategy to decarbonize our value chains and develop our activities in materials essential for the energy transition. Our AP60 technology is already proven and producing some of the lowest-carbon aluminum in the world, thanks to the expertise of our highly qualified workforce and access to renewable hydropower. This is the most significant investment in the aluminum sector for more than a decade, and it will further strengthen Rio Tinto's high-quality and low-carbon offering to our customers as they also work to reduce their own carbon footprint. I would like to thank both the Government of Canada and the Government of Quebec for their support in progressing this project. We are also continuing to work together on the future implementation of the ELYSIS^TM zero-carbon smelting technology at our Quebec facilities."

– Jakob Stausholm, CEO of Rio Tinto Group

Quick facts

• With more than 10,000 employees working at over 35 sites across Canada, Rio Tinto is one of the most important metals and minerals producers operating in Canada today.
• The Canadian Critical Minerals Strategy, which was launched in December 2022, is backed by up to $3.8 billion in federal support, announced in Budget 2022. The proposed funding covers the whole critical minerals supply chain, from geoscience and exploration to mineral processing, manufacturing, and recycling applications, including support for research, development and technological deployment.
• Through the 2030 Emissions Reduction Plan and the Critical Minerals Strategy, Canada is on track to achieve our goal of cutting emissions by 40 to 45% below 2005 levels by 2030.
• The Government of Canada has provided funding to ELYSIS Limited Partnership, a joint-venture technology partnership between Rio Tinto and Alcoa, to produce the world's first true net-zero aluminum smelting technology.
• In October 2022, the government announced up to $222 million in funding through the Strategic Innovation Fund to help Rio Tinto Fer et Titane, a subsidiary of Rio Tinto, increase its production of critical minerals, including lithium, titanium and scandium.

Associated links

• 2030 Emissions Reduction Plan
• Budget 2022 Backgrounder: Clean Air and a Strong Economy
• Canadian Critical Minerals Strategy
• Rio Tinto Canada

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SOURCE Innovation, Science and Economic Development Canada

Contacts: Laurie Bouchard, Director of Communications, Office of the Minister of Innovation, Science and Industry, [email protected]; Media Relations: Innovation, Science and Economic Development Canada, [email protected]