Ottawa puts $193M into Quebec aluminum smelter upgrades

The federal government is putting $193.3 million into upgrades at Rio Tinto and Aluminerie Alouette smelters in Quebec, saying the projects will help maintain about 6,000 full-time jobs as the aluminum industry deals with U.S. tariffs.

The money comes from the Strategic Response Fund and was announced Oct. 23 in La Baie, Que., by Innovation, Science and Economic Development Canada.

Rio Tinto Aluminium will receive $164.8 million toward $818.5 million in projects in the Saguenay-Lac-Saint-Jean region. The work includes a new billet casting centre at the company’s Alma smelter and modernized anode baking furnaces at its Grande-Baie smelter, along with infrastructure upgrades and equipment refurbishment.

Aluminerie Alouette, which runs a smelter in Sept-Îles, Que., will receive $28.5 million toward a $135-million project to modernize and optimize its electrolysis operations. The project targets energy performance, competitiveness and lower greenhouse gas emissions, according to the government’s news release.

Industry Minister Mélanie Joly said the critical minerals sector “drives key industries, such as defence, aerospace and automotive” that support jobs in Quebec and across the country.

Besides maintaining jobs, the projects are expected to support 65 co-op student placements and closer work with research institutions, colleges, universities and small and medium-sized businesses, the department said.

Aluminum is on Ottawa’s list of critical minerals, and Quebec produces most of the aluminum made in Canada. The industry has been under pressure since Washington placed tariffs on Canadian steel and aluminum. Read our explainer on Canada’s steel and aluminum quota talks and the latest on U.S. plans to drop some tariffs on Canada.

Alouette committed in 2025 to invest at least $1.5 billion in its Sept-Îles facilities by 2045, tied to an electricity rate deal with Hydro-Québec.

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Photo: Rio Tinto’s Laterrière aluminum plant in Saguenay, Que., on March 5, 2025. File photo. THE CANADIAN PRESS/Jacques Boissinot