Global mining giant Rio Tinto PLC has acquired a majority controlling interest in Canada's Nemaska Lithium, as part of its intensified efforts to invest in battery metals projects in Quebec. Sources indicate that Rio Tinto increased its stake in Nemaska to 54% through a series of investments. The Quebec government's financial institution, Investissement Quebec, remains a minority shareholder and is expected to inject CAD 200 million into the company to support its development.

Rio Tinto initially obtained a 50% stake in Nemaska through its USD 6.7 billion acquisition of Arcadium Lithium Plc, a transaction completed approximately one year ago. The global mining company anticipates investing around USD 300 million in its Quebec lithium operations by 2026, with plans to increase expenditures in subsequent years. This includes advancing its Galaxy hard-rock lithium mining project in the James Bay region, an open-pit mine with an estimated lifespan of 15 to 20 years.

Lithium is a critical material that enables batteries to store more energy per unit of weight. The new investments will help complete a project in Bécancour, Quebec, designed to convert spodumene concentrate into lithium hydroxide—a key material for producing electric vehicle batteries. The Bécancour project is expected to commence operations in 2028. Nemaska signed a long-term supply agreement with Ford Motor Company in 2023.

Rio Tinto declined to comment on its shareholding and investment plans, stating that the Galaxy project and the Nemaska Whabouchi mine, also located in northern Quebec, remain under review. In a strategic update last December, the company projected an annual investment of USD 1 billion over the next three years to grow its lithium operations in Canada and Argentina. It aims to more than double its lithium production capacity to approximately 200,000 metric tons of lithium carbonate equivalent per year by 2028. The Bécancour project is expected to have an annual production capacity of about 32,000 metric tons.