Rio Tinto (RIO) Invests $179M in Carbon-Free Aluminum JV

Core Viewpoint - Rio Tinto is advancing its position in low-carbon aluminum production by installing carbon-free aluminum smelting cells at its Arvida smelter in Québec, utilizing the ELYSIS technology, which aims to eliminate direct greenhouse gas emissions from aluminum smelting [1][12]. Group 1: ELYSIS Technology and Environmental Impact - The ELYSIS technology is designed to produce aluminum without direct greenhouse gas emissions, generating oxygen as a byproduct and enhancing production efficiency [1][12]. - In Canada, the implementation of ELYSIS technology could potentially reduce greenhouse gas emissions by 6.5 million metric tons, equivalent to removing 1.8 million cars from the roads [3]. - The plant will have an annual production capacity of up to 2,500 tons of commercial-quality aluminum without direct greenhouse gas emissions, with the first production targeted by 2027 [7]. Group 2: Investment and Financial Performance - Rio Tinto has formed a joint venture with Québec's government to design and build a demonstration plant, requiring a total investment of $285 million, with Rio Tinto contributing $179 million [11]. - Over the past year, shares of Rio Tinto have increased by 1.7%, while the industry has seen a decline of 3.1% [4]. - In the first quarter of 2024, Rio Tinto produced 826 kilotons of aluminum, a 5% increase year-over-year, and expects total aluminum production for 2024 to be between 3.2 million tons and 3.4 million tons [13].