MethodologyContact usSupportLogin
Key takeaways:
Jérôme Pécresse told Fastmarkets in an interview on Wednesday March 18 that the shift started before he joined the mining company in October 2023.
“It was clear that aluminium was becoming more important for Rio Tinto and there was more willingness to put capital in the business,” he said. “Investments such as AP60 [smelter technology] started before my time, and they made sense.”
The AP60 technology is notable for its high energy efficiency and low emissions, aligning with global carbon-neutral goals. When combined with the hydropower used at Rio Tinto’s operations in Canada, it generates one-seventh of the greenhouse gases per tonne of aluminium when compared with the industry average, and half of the emissions when compared with the technology currently used at the company’s Arvida smelter.
While it is not a new geography, Rio Tinto’s AP60 expansion in Quebec remains integral to its diversification because it demonstrates the scalable technology that the company now seeks to export.
“When I joined,” Pécresse said, “I felt that having the two main hubs in Canada and Australia-New Zealand was good, but probably not diversified enough. Diversification increases resilience, and allows us to capture aluminium demand growth globally, particularly in a world where sovereignty of production is going to be critical.”
According to Pécresse, governments are increasingly wary of reliance on imports from regions with volatile energy supplies or geopolitical tension, giving local production strategic importance.
“For example,” he said, “Europe will want more local production of aluminium, and global flows cannot be secure, such as we see today in the Middle East. So, there is an incentive for us to develop a more global position in smelting.”
Inform your business strategy with our short-term aluminium market forecasts. Get a sample of our aluminium price forecast today.
This strategy is playing out through a series of major projects.
In Europe, Rio Tinto has entered a strategic partnership to study a low-carbon aluminium greenfield project in Kokkola, Finland. If built, it would be the first primary aluminium development in continental Europe in more than three decades and the company’s first AP60 smelter outside Canada.
The project remains in the planning stage, with the final investment decision (FID) pending. The initiative includes Swedish investor Vargas, Mitsubishi Corporation, Finnish Industry Investment (TESI) and Nordic energy provider Fortum, among others.
In India, Rio Tinto is exploring the possibility of a new integrated smelter primarily targeting export markets. Pécresse noted that the company is working with a local partner which will provide the renewable electricity contract, including renewable power supported by pumped hydro storage, ensuring reliable base-load supply for smelter-grade operations.
India’s grid is still dominated by coal and intermittent solar power, so securing long-term hydro-backed contracts is essential for cost-competitiveness and decarbonization, Pécresse said.
The project is at an early stage, with a study continuing to consider the potential development of a primary aluminium smelter with capacity for as much as 1.0 million tonnes per year, and 2.0 million tpy of alumina production.
In Latin America, Rio Tinto is targeting Brazil, where it and Aluminum Corp of China Ltd (Chalco) are advancing a joint acquisition of Votorantim’s controlling shareholding in Companhia Brasileira de Alumínio (CBA), a fully integrated aluminium business.
The transaction, announced in January 2026, would see Rio Tinto own around 33% of the joint venture, with Chalco holding 67%, subject to regulatory approvals and customary conditions.
Pécresse said that the investment is capital-intensive, with a plan to reinvest in growing the CBA assets.
Brazilian aluminium output is concentrated among a few major market participants, making this joint venture a strategic foothold for Rio Tinto. Unlike its usual preference to operate the aluminium assets in which it has a stake, Pécresse noted that the CBA structure reflects both the scale of investment and Chalco’s operational capabilities in Brazil.
CBA also produces secondary aluminium across its recycling operations and is expanding this capacity, aligning with global recycling trends.
This is an area where Rio Tinto, which produced 3.8 million tonnes of aluminium last year, plans to grow.
In December 2023, Rio Tinto completed the transaction to take a 50% equity stake in Giampaolo Group’s Matalco business, which combines primary aluminium production capabilities with a large portfolio of recycled aluminium production.
Matalco operates six remelting and casting facilities in the US and one in Canada, with capacity to produce roughly 900,tpy of recycled aluminium.
“In the months since the Metalco acquisition, we see clearly that we can create a lot of value at the intersection of primary and secondary aluminium, which is the ultimate vision of the business,” Pécresse said.
Industry experts note that secondary aluminium is increasingly critical while companies pursue circular economy strategies. Recycling can reduce energy use by as much as 95% compared with primary production, creating both environmental and cost advantages.
“Wherever we have significant primary aluminium, we will aim to complement it with secondary aluminium, leveraging scrap efficiently to provide value to customers,” Pécresse said. “To get smarter on scrap, we need to be better at collecting it, and that requires governments to recognize that aluminium scrap is a strategic resource.”
Discover how Fastmarkets assesses and explains the evolving value of low‑carbon steel and aluminium in a rapidly changing global market.