Rio Tinto to expand its AP60 low-carbon aluminium smelter in Quebec
Rio Tinto will invest $1.1 billion (CAN$1.4 billion) to expand its state-of-the-art AP60 aluminium smelter equipped with low-carbon technology at Complexe Jonquière in Canada, Business Wire is reporting.
The total investment includes up to $113 million (CAN$150 million) of financial support from the Quebec government. The expansion, which will coincide with the gradual closure of potrooms at the Arvida smelter on the same site, will enable Rio Tinto to continue meeting customers’ demand for low-carbon, high-quality aluminium for use in transportation, construction, electrical and consumer goods.
The investment will add 96 new AP60 pots, increasing capacity by approximately 160,000 metric tonnes of primary aluminium per year, enough for 400,000 electric cars. As a result, there will be a total of 134 AP60 pots and a capacity of approximately 220,000 tonnes per annum. Construction will occur over two-and-a-half years with commissioning of the new pots expected to start in the first half of 2026 and the smelter fully ramped up by the end of 2026. Once completed, the expanded smelter is expected to be in the first quartile of the industry cost curve.
This new capacity will offset the 170,000 tonnes of capacity lost through the gradual closure of potrooms at the Arvida smelter from 2024. In addition, Rio Tinto will add 30,000 tonnes of new capacity through the commissioning of the previously announced recycling facility at Arvida in the first quarter of 2025.
The AP60 smelting technology was developed by Rio Tinto’s Research and Development teams and is amongst the most efficient and lowest carbon technology currently available at commercial scale.
When combined with the hydropower used at Rio Tinto’s operations in Canada, it generates one seventh of greenhouse gases per tonne of aluminium when compared with the industry average, and half the emissions when compared to the technology currently used at the Arvida smelter.
The project will generate up to 1,000 jobs during the peak of construction and approximately 100 permanent jobs will be maintained as a result of the expanded smelter.
Rio Tinto Chief Executive Jakob Stausholm said: “This investment is aligned with our strategy to decarbonise our value chains and grow in materials essential for the energy transition. Our AP60 technology is already proven and producing some of the lowest carbon aluminium in the world, thanks to the expertise of our highly qualified workforce and access to renewable hydropower. This is the most significant investment in our aluminium business 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.
Quebec Premier François Legault said: “A great momentum is building in our regions for our green economy. The aluminium industry in Saguenay-Lac-Saint-Jean has always been a real source of pride and has created considerable wealth in the region. Today's announcement will breathe new life into this industry with greener, less polluting processes.”
Rio Tinto and the Canadian government have also signed a memorandum of understanding that deepens their commitment to strengthen supply chains for low-carbon primary metals, critical minerals and other value-added products. The cooperation will also aim to support projects that have the potential to grow Rio Tinto’s activities in Canada, including the current and future decarbonization of the aluminium supply chain.
Image of Saguenay Lac-Saint-Jean courtesy of Rio Tinto.