The Canadian federal government will invest $193.3 million in projects at Rio Tinto and Aluminerie Alouette to modernize aluminum production in Quebec, as the industry continues to face steep U.S. tariffs. 

Announced by Industry Minister Mélanie Joly on Oct. 23, the funding comes through the government’s Strategic Response Fund. 

Rio Tinto will receive $164.8 million towards the company’s $818.5 million decarbonization projects in the Saguenay-Lac-Saint-Jean region. Funding will support a new billet casting centre at its Alma smelter to expand production of value-added aluminum products, as well as upgrades to the anode baking furnaces at its Grande-Baie smelter. 

Rio Tinto, Canada’s largest primary aluminum producer, employs around 4,300 people in Quebec. The company’s Alma casting centre was first announced in 2022, and the company reported in July 2026 that construction was 80 per cent complete, with commissioning scheduled for early 2027. 

“As we celebrate 100 years of aluminum production in Saguenay-Lac-Saint-Jean, and in the context of increased international competition, this investment is a real driver for accelerating modernization, growth and the decarbonization of our operations in the region,” Sébastien Ross, managing director of Atlantic Operations at Rio Tinto, said in an Oct. 23 news release. 

Aluminerie Alouette will receive $28.5 million in federal funding to support modernization projects at its Sept-Îles smelter, the largest in North America. The projects involve improvements to the composition of carbon anodes used in the alumina electrolysis process and optimization of the particle size for the material used to retain heat in electrolysis pots. 

According to Aluminerie Alouette, these upgrades are expected to reduce emissions by approximately 25,000 tonnes of carbon dioxide equivalent annually, and are expected to be completed in 2027. 

“Given the unpredictable economic climate we’re navigating, the government’s support strengthens investor confidence and allows us to envision a sustainable future, despite the current circumstances,” Claude Gosselin, president and CEO of Aluminerie Alouette, said in an Oct. 23 news release. 

The federal government anticipates the investments in Rio Tinto and Aluminerie Alouette will help to maintain about 6,000 full-time jobs across Quebec and Canada. The projects will also support 65 co-op student placements and foster partnerships with Canadian research and post-secondary institutions. 

The United States currently levies a 50 per cent tariff on imports of Canadian aluminum, up from the 25 per cent initially imposed in March 2025.