Rio Tinto has announced a slowdown in the construction of its Nemaska lithium processing plant in Bécancour, Quebec, citing rising costs, though the company insists the timeline for first production in 2028 remains on track.
The decision involves reducing the contractual workforce by half over the coming months, while retaining several hundred workers to focus on optimization efforts. The plant, currently 70% complete, is designed to produce 32,000 tonnes of lithium hydroxide annually, positioning it as a key asset in Rio Tinto’s push into battery materials.
Just weeks ago, the Australian mining giant increased its stake in Nemaska to 53.9%, securing majority control, and committed $300 million to the project. The Quebec government, holding the remaining 46.1%, has also pledged $200 million in support. This financial backing underscores the strategic importance of the Bécancour facility within Rio Tinto’s global lithium growth plans.
Sponsored · First Phosphate Corp.
While some activities at the site will continue, others will be paused or deferred, with a full restart of construction anticipated in 2027. Rio Tinto emphasized its unwavering commitment to Quebec as a critical hub for its lithium ambitions.
The Bécancour plant is part of Nemaska’s integrated spodumene-to-lithium project, linked to the Whabouchi deposit in James Bay, which is projected as a 26-year operation producing 200,000 tonnes of concentrates annually. However, Rio Tinto is currently evaluating whether Whabouchi or its nearby Galaxy hard rock lithium project offers the optimal supply strategy for Bécancour, with a decision expected in the second half of 2026.
This recalibration comes as the company navigates cost challenges in a volatile battery metals market, balancing short-term adjustments with long-term goals. The final call on the spodumene source will shape the project’s economics, with Galaxy reportedly emerging as a potential frontrunner.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
