On Wednesday, Rio Tinto (NYSE:RIO) disclosed a significant development in its lithium strategy, as it now holds a 53.9% majority stake in Nemaska Lithium.
This shift in ownership follows equity investments by both Rio Tinto and the Government of Quebec, and positions Rio Tinto to take over direct management of the company, aiming to enhance its lithium operations in Quebec.
Rio Tinto’s Bold Lithium Strategy Unveiled
The company plans to leverage its expertise in development, operations, and sales to construct an integrated lithium business in the region.
The collaboration with the Government of Quebec will continue, with ongoing funding directed towards the lithium hydroxide plant in Bécancour, which has reached 60% completion.
The Government of Quebec is set to invest up to $200 million in Nemaska Lithium, while Rio Tinto will contribute over $300 million in 2026.
This financial commitment underscores the strategic importance of the project in expanding Rio Tinto’s lithium business.
How Will Quebec Shape The Lithium Market?
Jérôme Pécresse, Chief Executive of Rio Tinto Aluminium & Lithium, highlighted the significance of the company’s Quebec operations, noting their role in advancing Rio Tinto’s lithium ambitions. He stated that the evolution of Nemaska Lithium is pivotal for the company’s growth and performance goals in the lithium sector.
According to the company, this strategic move will enable Rio Tinto to better support the long-term development of Nemaska Lithium, enhancing its integrated lithium product offerings.
Investments That Could Transform Lithium Supply
The ongoing investments in Nemaska Lithium are part of a broader strategy to supply the materials necessary for future industries. This initiative aligns with Rio Tinto’s vision of expanding its global lithium business and securing a leading position in the market.
With the completion of engineering at the Bécancour site, the focus now shifts to finalizing construction and operational readiness.
This development is expected to significantly enhance Rio Tinto’s capacity to meet the growing demand for lithium products.
RIO Price Action
Rio Tinto shares were down 3.20% at $95.76 during premarket trading on Thursday, according to Benzinga Pro data.
The shares declined after the mining giant reported full-year earnings that came in below analyst forecasts, pressured mainly by weakness in its iron ore segment.
The company’s results showed flat underlying earnings as weaker iron-ore prices weighed on its core business. The world’s largest iron ore producer earned $10.87 billion in 2025, below the $11.03 billion consensus.
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