Government of Canada invests over $190 million to advance Canada's critical minerals sector and strengthen aluminum processing

Investing in Rio Tinto's industrial facilities and Aluminerie Alouette's smelting operations will strengthen the competitiveness of Canada's aluminum sector

LA BAIE, QC, Oct. 23, 2026 /CNW/ -- Canada's aluminum and critical minerals sector is a strategic industrial asset that supports thousands of high-quality jobs and underpins key industries including aluminum extrusion, defence, aerospace, automotive and infrastructure. Canada has everything it needs here at home to build a strong Canadian economy, but as tariffs threaten Canadian industry, we are investing to strengthen our industrial base, protect Canadian jobs and support long-term economic resilience.

To that end, the Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, announced a $193.3 million investment under the Strategic Response Fund to strengthen Canada's aluminum industry.

The first investment is $164.8 million toward Rio Tinto's $818.5 million projects to strengthen and decarbonize the company's aluminum value chain in Saguenay–Lac-Saint-Jean. The projects will enhance the production capacity and efficiency of regional operations.

This includes the construction of a new billet casting centre at the Alma smelter to support the production of value-added aluminum products, as well as the modernization of the anode baking furnaces at the Grande-Baie smelter through major infrastructure upgrades and equipment refurbishment to improve reliability, productivity and long-term competitiveness.

The second investment of 28.5 million will go toward Aluminerie Alouette's $135 million project to modernize and optimize its electrolysis operations. These technological improvements will directly target energy performance, industrial competitiveness and the reduction of greenhouse gas emissions. By investing in transformational, emissions-reducing projects like Alouette's, we are increasing Canada's global competitiveness in the aluminum sector.

Together, these projects are expected to maintain approximately 6,000 full-time, well-paying jobs across Quebec and Canada, support 65 co-op student placements and strengthen collaborations with Canadian research institutions, post-secondary institutions, and small and medium-sized enterprises.

As global tariffs put pressure on Canadian industries and reshape international trade dynamics, the Government of Canada is investing in our critical mineral resources, modernizing the aluminum supply chain and protecting well-paying Canadian jobs.

Quotes

"Canada's critical minerals sector drives key industries, such as defence, aerospace and automotive, that support jobs and communities in Quebec and across Canada. By investing in the long-term competitiveness of Canada's largest aluminum smelter, we are reinforcing a globally competitive, low-carbon aluminum industry and laying the groundwork for growth in Canada's downstream aluminum sector, including the extrusion sector. As global trading relationships are shifting, we are making investments that will drive economic growth, reinforce Canada's role in the global energy transition, protect jobs and build a strong, resilient Canadian economy."
– The Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions

"This is an important investment for the future of Rio Tinto, its workers, the region and Québec as a whole. I'm proud to be part of a government that invest in our present to strengthen the competitiveness of Canada's aluminum sector,  without compromising our youth future."
– Daniel Gobeil, Parliamentary Secretary to the Minister of Agriculture and Agri-Food

"Rio Tinto thanks the Government of Canada for this important support to Canada's aluminum industry. As we celebrate 100 years of aluminum production in Saguenay–Lac-Saint-Jean, and in the context of increased international competition, this investment is a real driver for accelerating modernization, growth and the decarbonization of our operations in the region. It's helping reinforce our value chain, support quality jobs and create the necessary conditions for continuing to invest, innovate and produce here in Quebec and in Canada."
– Sébastien Ross, Managing Director of Atlantic Operations at Rio Tinto Aluminium

"With the fund's support, we are continuing to modernize our operations while improving energy efficiency and reducing greenhouse gas emissions. As the largest aluminum smelter in the Americas, we are proud to generate significant economic benefits for Canada, notably through approximately 1,000 quality jobs and hundreds of millions of dollars in purchases of goods and services. In a geopolitical context where uncertainty remains very high, the government's support strengthens investor confidence and allows us to keep investing toward a sustainable future."
– Claude Gosselin, President and Chief Executive Officer of Aluminerie Alouette

Quick facts

• Rio Tinto Aluminium (RTA) is the largest producer of primary aluminum in Canada and a key North American supplier. With its Canadian hub in Montréal, RTA is a business unit of the Rio Tinto Group, a British-Australian multinational, and produces roughly half of Rio Tinto Group aluminum in Quebec's Saguenay–Lac-Saint-Jean region.
• Rio Tinto employs approximately 4,300 people in Quebec, out of approximately 14,000 employees in Canada across its aluminum and mining segments.
• Officially announced in 1989, Aluminerie Alouette was built in less than three years and produced its first tonne of aluminum in June 1992.
• Aluminerie Alouette is the largest aluminum smelter in North America, employing over 1,000 people and producing approximately 633,000 tonnes of primary aluminum annually.
• In Canada, there are nine primary aluminum smelters, with one in Kitimat, British Columbia, and the other eight in Quebec.
• The Strategic Response Fund (SRF) helps Canadian industries innovate, adapt and compete in a changing global economy. The SRF supports large-scale, transformative projects that build economic resilience, strengthen supply chains and protect good jobs in key sectors such as steel, aluminum, automotive, forest products, artificial intelligence and advanced technologies.

Associated links

• Investment to help Canada's aluminum industry eliminate its carbon footprint
• Canada deepening its collaboration with global leader Rio Tinto to produce the world's greenest aluminum
• Minister Joly announces $100 million investment to transform Canada's aluminum sector
• Rio Tinto Aluminium
• Aluminerie Alouette
• Government of Canada expands investment in critical clean technology manufacturing and clean energy

Stay connected

Find more services and information on the Innovation, Science and Economic Development Canada website.

Follow Innovation, Science and Economic Development Canada on social media.
X (Twitter): @ISED_CA | Facebook: Canadian Innovation | Instagram: @cdninnovation | LinkedIn: Innovation, Science and Economic Development Canada

SOURCE Innovation, Science and Economic Development Canada

Contacts: Mathis Denis, Deputy Director, Media Relations, Office of the Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, [email protected]; Media Relations, Innovation, Science and Economic Development Canada, [email protected]