Rio Tinto has taken majority control of Canadian producer Nemaska Lithium, aiming to develop a fully integrated lithium supply chain in Quebec to support electric vehicle manufacturing in North America.
The mining company said it now holds a 53.9% stake in Nemaska Lithium and will assume direct management responsibility. The government of Quebec retains the remaining 46.1% through its investment arm Investissement Québec and will continue to participate in strategic decisions, though it no longer has a controlling share.
Rio Tinto first entered the project by acquiring a 50% interest through its takeover of lithium producer Arcadium in a $6.7 billion deal, which significantly expanded the company’s presence in battery materials. The group has since invested more than $300 million this year to advance lithium operations in the province, while Quebec plans to contribute up to $200 million through additional share purchases.
Nemaska Lithium’s assets include the Whabouchi spodumene mine in northern Quebec and a lithium hydroxide processing plant under construction in Bécancour. Ore extracted at the mine will be transported south for refining into battery-grade lithium hydroxide. Rio Tinto said it is currently evaluating supply options for the processing facility, with a decision expected in the first half of 2026. The plant is scheduled to begin operations this year, though full-scale production is not anticipated until 2028.
Lithium hydroxide produced from these operations is typically used in high-energy batteries with nickel-rich chemistries, widely deployed in electric vehicles. Nemaska previously signed a supply agreement with Ford in 2023, though demand dynamics remain uncertain as some automakers shift toward lithium iron phosphate batteries, which rely on lithium carbonate rather than hydroxide.
“Rio Tinto’s activities in Québec play an important role in our ambition to take our world-class lithium business to the next level of growth and performance, notably through Nemaska Lithium,” said Jérôme Pécresse, chief executive of Rio Tinto Aluminium & Lithium. He added that the company remains committed to developing assets in Canada to supply materials for future industries.
The investment comes amid volatile lithium markets and evolving battery technologies. While lithium demand is expected to grow as electrification expands, increasing adoption of lower-cost chemistries and emerging alternatives such as sodium-ion batteries could influence long-term material requirements.
Rio Tinto’s move also reflects broader efforts by North American governments and industry to secure domestic sources of critical minerals for the energy transition. However, analysts note that price fluctuations and policy uncertainty continue to complicate large-scale investment decisions in the sector.
