Government of Canada Welcomes Rio Tinto’s Expansion of Low-Carbon Aluminum Production

Image Credit, Kumar Rai

In a move toward a greener future, the Government of Canada has endorsed Rio Tinto’s initiative to enhance the production of low-carbon aluminum. The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, announced the expansion plan today, highlighting its crucial role in reducing greenhouse gas (GHG) emissions and bolstering Canada’s aluminum manufacturing sector.

As the world’s fourth-largest producer of primary aluminum, Canada plays a pivotal role in supplying strategic metals to North America, particularly to critical sectors like automotive, transportation, energy, and infrastructure. The transition to low-carbon aluminum production is integral to achieving Canada’s ambitious climate goals and maintaining its position as a key player in the global low-carbon economy.

Rio Tinto’s expansion project focuses on the implementation of ELYSIS™, a revolutionary smelting technology that promises to eliminate nearly all emissions associated with aluminum production. This technology represents a groundbreaking shift in the industry by altering the chemical process to produce oxygen instead of carbon dioxide.

Minister Champagne emphasized that the project aligns with Canada’s vision of a cleaner, more resilient economy. “ELYSIS™ is truly a disruptive technology for the industry, and it’s thanks to Quebec’s expertise that we are the first in the world to produce aluminum that is free of greenhouse gases,” stated Pierre Fitzgibbon, Quebec’s Minister of Economy, Innovation, and Energy.

With over 10,000 employees across more than 35 sites in Canada, Rio Tinto remains a significant player in the metals and minerals sector. The company’s Canadian subsidiary, Rio Tinto Alcan (RTA), sources 42% of its inputs from local suppliers and exports to about 16 countries, reinforcing its substantial economic impact.

The United States is the primary destination for Canadian aluminum, accounting for 92% of exports in 2022. To further support the decarbonization efforts, the Government of Canada has funded the ELYSIS Limited Partnership—a joint venture between Rio Tinto and Alcoa aimed at developing the world’s first net-zero aluminum smelting technology.

In line with its commitment to the Paris Agreement, Rio Tinto has set ambitious GHG reduction targets: 15% by 2025, 50% by 2030, and achieving net zero by 2050. This initiative is part of Canada’s broader 2030 Emissions Reduction Plan and Critical Minerals Strategy, which aims to cut emissions by 40 to 45% below 2005 levels by 2030.

The announcement follows a series of government actions to support sustainable development. In October 2022, Canada pledged up to $222 million through the Strategic Innovation Fund to help Rio Tinto Fer et Titane, another subsidiary, decarbonize and boost production of critical minerals like lithium, titanium, and scandium.

Rio Tinto’s expansion project signifies a major advancement in Canada’s journey towards a sustainable, low-carbon economy. By leveraging cutting-edge technology and strategic partnerships, Canada continues to lead the way in innovative solutions for climate change, ensuring a prosperous and environmentally responsible future.