Nemaska pause clouds Rio Tinto’s Quebec lithium plans
The Bécancour project forms part of Quebec’s attempt to build a battery supply chain that converts locally mined minerals into higher-value materials.
Rio Tinto's lithium plant in Quebec, located in the Bécancour region, is facing construction delays that could push its planned 2028 start date into further uncertainty, according to a recent report from Le Journal de Montréal. The plant, which has already seen the loss of 68 jobs through December, is currently 70% complete but has been put on hold until 2028.
Rio Tinto, which took direct management control of the project in February and now holds 54% of the venture, stated in a letter to employees that work could resume in 2028, though this has not been confirmed. Despite the pause, Rio Tinto maintains that the decision does not indicate a reduction in commitment from the company or the Nemaska Lithium Board.
The province of Quebec, which provided up to $200 million in additional funding and Rio Tinto more than $300 million for the Quebec lithium business in 2026, remains committed to the project, describing its contribution as the final investment. The delay raises questions about the return on Quebec's investment and the plant's long-term viability, especially as lithium carbonate spot prices in Asia have fallen significantly from more than $25 in May to $12.90 per kilogram, according to BMO.
Rio Tinto is also reviewing the plant's long-term supply of spodumene, the lithium-bearing mineral used to make lithium hydroxide, with the choice between the Whabouchi project and its wholly-owned Galaxy project still unresolved.
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