Aluminerie Alouette Plans $1.5B Quebec Modernization With Hydro-Québec Deal

Aluminerie Alouette, backed by Rio Tinto with a 40% stake, plans to invest at least C$1.5 billion (approximately US$1.1 billion) over the next 20 years to modernize its aluminum smelting facilities in northern Quebec. This investment is supported by a new electricity rate agreement with Hydro-Québec, which will provide stable and competitive power costs until 2045, allowing the company to remain competitive despite 50% tariffs imposed by the U.S. on aluminum imports. The smelter in Sept-Îles employs about 950 people and has an annual production capacity of 630,000 tons, representing 20% of Quebec's aluminum output and 70% of North America's production. Quebec Premier François Legault and Economy Minister Christine Frechette emphasized the importance of this deal for maintaining regional economic stability and meeting U.S. demand for aluminum. Wall Street analysts are optimistic about Rio Tinto's growth, with price targets suggesting potential upside in the company's stock value due to this strategic investment. The initiative aims to strengthen the company's position in the aluminum market amid ongoing trade tensions and industry challenges.