Rio Tinto Group (NYSE: RIO) (ASX: RIO) has taken majority control of Nemaska Lithium after increasing its stake to 53.9 per cent, positioning the mining giant to directly manage one of Québec’s most advanced lithium development projects.
The Government of Québec, through Investissement Québec, now holds 46.1 per cent. Additionally, both partners will continue funding construction and development activities.
Rio Tinto acquired an additional 3.9 per cent stake following recent equity investments. Consequently, the company now assumes direct management responsibility for Nemaska Lithium.
The project includes a lithium hydroxide plant in Bécancour and the Whabouchi spodumene mine in northern Québec. Construction at the Bécancour facility reached 60 per cent completion by the end of 2025. Engineering work at the site is now complete.
Meanwhile, commissioning activities at the plant are scheduled to begin in 2026. First production is expected in 2028.
The Québec government plans to invest up to USD$200 million through additional equity subscriptions. Rio Tinto will invest more than USD$300 million in 2026 to advance its lithium operations in the province. Furthermore, those funds will support continued development of an integrated spodumene-to-hydroxide supply chain.
Rio Tinto gained its initial 50 per cent stake in Nemaska Lithium through its March 2025 acquisition of Arcadium Lithium. The Nemaska assets form part of the company’s broader strategy to expand battery materials production.
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Lithium markets remain under global supply pressure
Chief executive of Rio Tinto Aluminium & Lithium, Jérôme Pécresse, said Québec plays a central role in the company’s lithium growth plans. He explained that direct management will help improve coordination and execution across development, operations and marketing.
He added that the move should strengthen Nemaska Lithium’s long-term growth and expand Rio Tinto’s integrated product offering. Additionally, he said the company aims to elevate performance across its global lithium portfolio.
Nemaska Lithium plans to convert spodumene concentrate from mined ore into lithium hydroxide. That refined product serves as a key input for electric vehicle batteries.
However, Rio Tinto is still evaluating the optimal source of spodumene feed for the Bécancour plant. The company is reviewing both the Whabouchi mine and the Galaxy mine, which it wholly owns. This assessment is expected to conclude in the first half of 2026.
Consequently, the outcome will determine how Rio Tinto structures supply to the processing facility. The integrated model aims to serve rising lithium demand in North America and Europe.
Lithium markets remain under pressure as global supply continues to outpace demand. Additionally, producers in Australia, China and South America expanded output during the past two years, creating a supply glut. Spot lithium prices have fallen sharply from their 2022 peaks. Consequently, several higher-cost projects have delayed expansion plans.
Meanwhile, electric vehicle sales growth has slowed in key markets, including Europe and China. Automakers have also reduced short-term battery orders as inventories built up. However, analysts expect long-term demand to recover as governments push decarbonization policies. The current downturn has forced producers to focus on cost control and disciplined capital spending.
