Accelerate the layout of the battery metal industry chain! Rio Tinto plc Sponsored ADR (RIO.US) obtains controlling rights in Canadian lithium company Nemaska.

According to informed sources, global mining giant Rio Tinto plc Sponsored ADR (RIO.US) has acquired majority control of Canadian lithium company Nemaska, as part of its efforts to increase investment in battery metal projects in Quebec. Sources say that Rio Tinto plc Sponsored ADR has increased its stake in Nemaska to 54% through several investments. The Quebec government's Financial Institutions, Inc. Investissement Quebec remains a minority shareholder and is expected to provide a $200 million investment to support the company's development. Rio Tinto plc Sponsored ADR initially acquired a 50% stake in Nemaska by purchasing Arcadium Lithium Plc for $6.7 billion approximately a year ago. The global mining company plans to invest around $300 million in its Quebec lithium business by 2026 and increase spending in the following years. This includes advancing the Galaxy hard rock lithium mine development project in the James Bay area, with an estimated lifespan of 15 to 20 years. Lithium is an important material that allows batteries to store more energy per unit weight. The new investment will help complete a project in Becancour, Quebec, which aims to convert spodumene concentrate into lithium hydroxide a key material for electric vehicle battery production. The Becancour project is expected to start production in 2028. Nemaska has signed a long-term supply agreement with Ford Motor Company in 2023. Rio Tinto plc Sponsored ADR has declined to comment on its ownership status and investment plans, stating that the Galaxy project and the Nemaska Whabouchi mine, also located in northern Quebec, are currently under review. In a strategic update in December last year, the company stated that it plans to invest $1 billion annually in its lithium business growth in Canada and Argentina in the next three years, and aims to double its lithium production capacity to around 200,000 metric tons of lithium carbonate per year by 2028. The Becancour project is expected to have an annual capacity of approximately 32,000 metric tons.