Rio Tinto Commissions $1.5 Billion AP60 Smelter Expansion in Quebec Cutting Emissions by 290,000 Tonnes Annually

Rio Tinto has begun commissioning its $1.5 billion AP60 smelter expansion at Complexe Arvida in Quebec, marking the first major primary aluminium project to enter production in the Western world in more than a decade and increasing the plant's annual production capacity by approximately 160,000 metric tonnes to a total of 220,000 metric tonnes using AP60 technology. The expansion, which began start-up in March 2026 and is expected to reach full commissioning with all 96 new pots operating by the end of 2026, will reduce carbon dioxide equivalent emissions by approximately 290,000 tonnes per year compared with the older Arvida smelter technology it is replacing. The AP60 technology generates approximately 1.6 tonnes of carbon dioxide equivalent per tonne of aluminium produced, compared with 3.2 tonnes for the existing Arvida technology and 10.9 tonnes for the industry average, making it one of the lowest-carbon aluminium smelting technologies available at commercial scale.

 

The AP60 Technology and Its Environmental Performance

 

Rio Tinto's AP60 technology was developed by its own Research and Development teams and represents a generational improvement in aluminium smelting efficiency and environmental performance. When combined with the hydropower used at Rio Tinto's Quebec operations, the technology generates one-sixth of the greenhouse gas emissions per tonne of aluminium compared with the global industry average, providing a carbon intensity advantage that is commercially significant as customers across the automotive, construction and consumer goods sectors seek low-carbon material inputs. The expansion will also deliver an expected reduction of up to 90 percent in fine particulate matter compared with the older technology, representing a major air quality improvement for the surrounding Saguenay community.

Jérôme Pécresse, Rio Tinto Aluminium and Lithium Chief Executive, said AP60 positions the company strongly for decades to come with one of the most advanced smelting technologies operating at commercial scale and demonstrates Rio Tinto's ability to deliver world-class, low-carbon technologies. He said the newly expanded smelter reinforces competitive positioning and increases operational efficiency in Quebec while reducing carbon emissions by approximately 290,000 tonnes per year compared with the old Arvida smelter. The combination of production expansion, carbon reduction and efficiency improvement from a single capital investment illustrates the potential for technology-led decarbonisation to deliver commercial and environmental objectives simultaneously in hard-to-abate industrial sectors.

 

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Economic Impact and Community Benefits

 

The AP60 project generated more than $1 billion in economic benefits for Quebec through spending with contractors and suppliers during construction, with peak construction employment exceeding 1,500 jobs. The expanded smelter will directly support approximately 100 permanent high-quality local jobs while helping consolidate positions across the supply chain. The closure of the older Arvida potrooms, expected to be completed in June, will be more than offset by the new production capacity, ensuring continuity of the site's economic contribution to the Saguenay region.

Canadian Industry Minister Mélanie Joly said Rio Tinto has been a cornerstone of Quebec's industrial strength for 100 years, creating good jobs and supporting communities, and that the government is proud to work alongside Rio Tinto to strengthen the aluminium industry, advance world-leading innovation and ensure Canadian workers remain at the forefront of a more resilient economy. Quebec Premier Christine Fréchette said the inauguration demonstrates that her government and Rio Tinto believe in Quebec's potential despite economic uncertainty related to US tariffs, and that the province is securing the future of its aluminium industry through modernisation and gradual decarbonisation of a sector vital to its economy.

 

The ELYSIS Partnership and the Path to Carbon-Free Aluminium

 

The AP60 expansion is explicitly positioned as a stepping stone toward the carbon-free aluminium electrolysis technology being developed by ELYSIS in Saguenay, a partnership that includes Rio Tinto and is supported by the Government of Canada through the Strategic Innovation Fund and the Government of Quebec through Investissement Quebec. ELYSIS technology eliminates all direct greenhouse gas emissions from aluminium smelting and produces oxygen as a by-product rather than carbon dioxide, representing a potential breakthrough for one of the most carbon-intensive industrial processes. A demonstration plant is being built in Quebec using the first commercial licence of the ELYSIS technology, with Rio Tinto's AP60 expansion providing the operational and revenue foundation to support continued investment in the next generation of aluminium smelting.

The relationship between AP60 and ELYSIS illustrates a pragmatic approach to industrial decarbonisation in which near-term deployment of the best available commercial technology is combined with sustained investment in breakthrough alternatives that may eventually eliminate residual emissions entirely. This phased approach allows Rio Tinto to deliver substantial carbon reductions now while maintaining the financial capacity and operational expertise needed to commercialise more ambitious technologies over a longer horizon. The Quebec government's active support for both phases of this strategy reflects recognition that industrial decarbonisation requires patient public-private partnership rather than immediate technology mandates that may not yet be commercially viable at scale.

 

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Outlook for Low-Carbon Aluminium in North America

 

The AP60 commissioning represents a significant milestone for Rio Tinto's position in the North American low-carbon aluminium market, arriving at a moment when customers across transportation, construction, electrical applications and consumer goods are actively seeking suppliers able to provide certified low-carbon material at commercial scale. The combination of AP60's operational carbon intensity and the underlying hydropower electricity supply provides Rio Tinto with a differentiated product that can command premium pricing and preferred supplier status with customers operating under supply chain decarbonisation obligations. Sustained operation of the expanded facility within its projected carbon intensity parameters will be essential for maintaining this competitive advantage.

Whether the ELYSIS demonstration plant in Quebec can establish a commercial pathway to truly carbon-free aluminium smelting will determine the long-term trajectory of Rio Tinto's decarbonisation ambitions in the sector. Success would position Rio Tinto and Quebec as global pioneers in the next generation of aluminium production, potentially establishing a technology and industrial leadership position with significant export value as other aluminium producing regions seek to adopt carbon-free smelting methods. The convergence of industrial decarbonisation demand, hydropower advantage and advanced smelting technology creates a distinctive competitive position for Rio Tinto's Quebec operations that is likely to strengthen as global carbon pricing and supply chain sustainability requirements intensify.

 

 

Source: Rio Tinto