Acquisition
Rio Tinto Takes Majority Control of Nemaska Lithium, Plans $300M Investment
•February 18, 2026
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Why It Matters
The deal accelerates Rio Tinto’s entry into the fast‑growing lithium market and positions Quebec as a key North‑American supply hub, strengthening the company’s integrated battery‑materials portfolio.
Key Takeaways
- •Rio holds 53.9% of Nemaska, Quebec 46.1%.
- •$300M investment targets lithium hydroxide plant expansion.
- •Plant capacity: 32,000 tonnes per year by 2028.
- •Quebec to contribute up to $200M equity funding.
- •Rio evaluates Whabouchi and Galaxy mines for supply.
Pulse Analysis
Rio Tinto’s recent acquisition of a majority stake in Nemaska Lithium marks a strategic pivot toward securing raw materials essential for electric‑vehicle batteries. By committing more than $300 million to Quebec, Rio not only deepens its foothold in a region rich in spodumene deposits but also aligns with its global ambition to become a leading integrated lithium supplier. The investment complements Rio’s broader $3 billion three‑year lithium spend, signaling confidence in sustained demand despite recent market volatility.
Quebec’s lithium ecosystem is rapidly maturing, with the Bécancour hydroxide plant now 60% complete and on track for a 2028 start‑up. The facility’s 32,000‑tonne annual output will feed downstream battery manufacturers, reducing reliance on overseas processing. Government backing—up to $200 million in equity—underscores the province’s commitment to fostering a domestic supply chain, positioning the region as Canada’s lithium hotspot alongside projects like Elevra’s North American mine and Sinomine’s Tanco operation.
From a competitive standpoint, Rio’s control of Nemaska gives it leverage over both spodumene mining and downstream conversion, a rare end‑to‑end capability in the sector. The company’s ongoing evaluation of the Whabouchi and Galaxy mines will determine the most cost‑effective feedstock strategy, potentially lowering production costs and enhancing margins. As automakers and energy storage firms accelerate battery roll‑outs, Rio’s integrated approach could translate into a decisive market advantage, attracting long‑term offtake contracts and solidifying its position in the burgeoning North‑American lithium value chain.
Deal Summary
Rio Tinto announced it now holds a 53.9% stake in Nemaska Lithium, giving it majority control and management responsibilities. The miner plans to invest over $300 million this year to expand the Quebec lithium operation, while the Quebec government will contribute up to $200 million. The deal follows Rio’s earlier acquisition of Arcadium, which gave it a 50% stake in Nemaska.
Article
Source: MINING.com – Gold
Rio Tinto (ASX, LSE, NYSE: RIO) said it plans to invest more than $300 million this year to expand its lithium business in Quebec after assuming control of Nemaska Lithium.
Following successive equity injections over the past year, Rio now holds 53.9% of Nemaska, compared with 46.1% for the Quebec government, according to a company statement Wednesday. Quebec has agreed to invest up to $200 million in Nemaska through equity subscriptions, Rio added.
Funding will go in part towards a new lithium hydroxide plant in Bécancour, Quebec, which was about 60% complete at the end of 2025 and is projected to have an annual capacity of 32,000 tonnes. The new facility is part of an effort by Rio to build an integrated lithium business in the province.
“Rio Tinto’s activities in Québec play an important role in our ambition to take our world-class lithium business to the next level of growth and performance, notably through Nemaska Lithium,” Rio Tinto Aluminium & Lithium CEO Jérôme Pécresse said.
“This evolution will facilitate the achievement of this objective and enable us to better support the long-term development of Nemaska Lithium, which will expand our integrated lithium product offering.”
Rio’s move further highlights Quebec’s status as Canada’s hotspot for lithium development, as it hosts almost half the country’s active lithium projects and its most advanced ones. That includes one of Canada’s two producing lithium mines, Elevra’s (Nasdaq: ELVR; ASX: ELV) North American Lithium mine near Val-d’Or. The other mine is Sinomine’s Tanco site in Manitoba.
James Bay mine
Founded in 2007, Nemaska is working to develop the Whabouchi spodumene mine in Quebec’s James Bay region along with the Bécancour plant. After facing cost overruns and restructuring under creditor protection in 2019, the company re-emerged as a joint venture between Quebec – through the province’s Investissement Québec financing arm – and Arcadium Lithium.
Commissioning activities in Bécancour are planned to start in 2026, with first production expected in 2028. Rio is conducting an evaluation of its Galaxy mine as well as Whabouchi to determine the optimal spodumene supply strategy for Bécancour. This evaluation is expected to be completed by the end of June.
Rio inherited a 50% stake in Nemaska when it acquired Arcadium for about $6.7 billion last year. In December, it unveiled plans to spend $1 billion annually over three years to boost lithium output in Canada and Argentina.
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