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Canada Commits C$193.3M to Rio Tinto and Alouette Aluminum Projects
The Canadian government has announced C$193.3 million in funding for Rio Tinto and Aluminerie Alouette, supporting nearly C$954 million in aluminum investments across Quebec. The projects target production efficiency, value-added processing and lower industrial emissions.
By Paul Ploumis
Published: October 27, 2026
Announcement date: October 23, 2026
Key Points
- Federal investment: C$193.3 million allocated through Canada's Strategic Response Fund.
- Rio Tinto: C$164.8 million for C$818.5 million in aluminum projects in Saguenay–Lac-Saint-Jean.
- Aluminerie Alouette: C$28.5 million toward a C$135 million smelter modernization project in Sept-Îles.
- Industry focus: Higher efficiency, value-added aluminum production and reduced emissions.
SEATTLE (Scrap Monster): Canada's federal government has committed C$193.3 million to aluminum production and modernization projects in Quebec, aiming to strengthen domestic manufacturing capacity and improve the industry's long-term competitiveness.
Industry Minister Mélanie Joly announced the funding on October 23, 2026, under the Strategic Response Fund, targeting projects at Rio Tinto and Aluminerie Alouette.
The investments come as Canadian aluminum producers face changing international trade conditions and pressure to improve energy efficiency and expand domestic processing capabilities.
Rio Tinto Receives C$164.8 Million for Aluminum Upgrades
Rio Tinto will receive C$164.8 million toward projects valued at C$818.5 million in Quebec's Saguenay–Lac-Saint-Jean region.
The investment includes construction of a new billet casting centre at the Alma smelter, intended to increase production of value-added aluminum products used by downstream manufacturers.
Funding will also support modernization of anode baking furnaces at Rio Tinto's Grande-Baie smelter, including infrastructure improvements and equipment refurbishment designed to strengthen productivity, reliability and operating efficiency.
Sébastien Ross, Managing Director of Atlantic Operations at Rio Tinto Aluminium, said the federal support would help accelerate modernization and decarbonization while supporting long-term industrial investment in Quebec.
Aluminerie Alouette Secures C$28.5 Million
Aluminerie Alouette will receive C$28.5 million toward a C$135 million modernization project at its Sept-Îles smelter.
The investment will focus on optimizing electrolysis operations, improving energy performance and reducing greenhouse gas emissions.
Alouette is North America's largest primary aluminum smelter, producing approximately 633,000 metric tons annually, according to the Canadian government.
ScrapMonster Edge: C$193.3M Supports Nearly C$954M in Projects
The federal contribution represents approximately 20.3% of the combined C$953.5 million project value.
| Company | Federal Funding | Project Value |
|---|---|---|
| Rio Tinto | C$164.8M | C$818.5M |
| Alouette | C$28.5M | C$135.0M |
| Total | C$193.3M | C$953.5M |
Source: Innovation, Science and Economic Development Canada, October 23, 2026.
Why it matters: The funding supports both primary smelter modernization and additional billet casting capacity. However, no new aluminum rolling mill is included in these announced allocations. Billet production and flat-rolled aluminum manufacturing serve different downstream markets.
Canada Targets a More Competitive Aluminum Industry
Joly said the investments would strengthen Canada's aluminum industry and support downstream manufacturing sectors, including aerospace, automotive, defence and extrusion.
The government is also emphasizing lower-emission production as an element of industrial competitiveness, particularly as global trade relationships change.
The projects are expected to support continued investment and employment at Quebec's aluminum facilities, although their eventual production and environmental improvements will depend on successful implementation.
Source: Innovation, Science and Economic Development Canada, October 23, 2026.
Courtesy: www.canadianmanufacturing.com
