Rio Tinto will make investments $1.1 billion (CAN$1.4 billion) to broaden its AP60 (earlier submit) aluminum smelter outfitted with low-carbon know-how at Complexe Jonquière in Canada. The entire funding consists of as much as $113 million (CAN$150 million) of monetary help from the Québec authorities.
This growth, which can coincide with the gradual closure of potrooms on the Arvida smelter on the identical website, will allow Rio Tinto to proceed assembly prospects’ demand for low-carbon, high-quality aluminum to be used in transportation, building, electrical and client items.
The funding will add 96 new AP60 pots, rising capability by roughly 160,000 metric tonnes of main aluminum per yr, sufficient for 400,000 electrical vehicles.
AP60 pots allow a step change in pot know-how by overcoming the challenges of very excessive amperage (500-600kA). AP60 is predicated on an optimized framework (busbars, shell and superstructure) and working tools. The anode assemblies, cathodes and linings, air flow and gasoline circulate for the AP60 goal excessive labor productiveness and low CAPEX/t.
The AP60 know-how generates roughly 1.6 tonnes of CO2e per tonne of aluminum produced, in comparison with roughly 3.2 tonnes of CO2e per tonne of aluminum for the Arvida smelter’s present know-how, and greater than 12 tonnes of CO2e per tonne of aluminum for the trade common.
Because of this, there can be a complete of 134 AP60 pots and a capability of roughly 220,000 tonnes every year. Building will run over two and a half years, with commissioning of the brand new pots anticipated to begin within the first half of 2026 and the smelter absolutely ramped up by the top of 2026. As soon as accomplished, the expanded smelter is predicted to be within the first quartile of the trade value curve.
This new capability will offset the 170,000 tonnes of capability misplaced by means of the gradual closure of potrooms on the Arvida smelter from 2024. As well as, Rio Tinto will add 30,000 tonnes of recent capability by means of the commissioning of the beforehand introduced recycling facility at Arvida within the first quarter of 2025.
These amenities will guarantee Rio Tinto’s casting amenities at Complexe Jonquière proceed to supply worth added merchandise that meet prospects’ wants, together with integrating recycled post-consumer aluminum into main aluminum alloys.
The AP60 smelting know-how was developed by Rio Tinto’s Analysis and Deelopment groups and is amongst probably the most environment friendly and lowest carbon know-how presently accessible at business scale. When mixed with the hydropower used at Rio Tinto’s operations in Canada, it generates one-seventh of greenhouse gases per tonne of aluminum when put next with the trade common, and half the emissions when in comparison with the know-how presently used on the Arvida smelter.
The undertaking will generate as much as 1,000 jobs throughout the peak of building and roughly 100 everlasting jobs can be maintained because of the expanded smelter.
Along with this funding in low-carbon aluminum, Rio Tinto is working with the Governments of Canada and Québec in direction of a deployment of the ELYSIS zero-carbon aluminum smelting know-how at its Saguenay–Lac-Saint-Jean amenities. With the present improvement pathway, ELYSIS goals to have its know-how accessible for set up from 2024 and the manufacturing of bigger volumes of carbon-free aluminum roughly two years later.
Rio Tinto and the Authorities of Canada have additionally signed a Memorandum of Understanding that deepens their dedication to strengthen provide chains for low-carbon main metals, essential minerals and different value-added merchandise. The cooperation will even intention to help tasks which have the potential to develop Rio Tinto’s actions in Canada, together with the present and future decarbonisation of the aluminum provide chain.
The funding within the AP60 smelter is already included as substitute capital expenditure in Rio Tinto’s capital funding steerage for 2023 to 2025. The Group’s capital expenditure steerage of $9 billion to $10 billion in each 2024 and 2025 stays unchanged.