Trudeau said the federal government would contribute $222 million towards Rio Tinto's plans to increase production of critical minerals and reduce carbon emissions.
Rio Tinto plans to spend more than $700 million over the next eight years on its Rio Tinto Fer et Titane operations in Sorel-Tracy. The final amount will be dependent on how much Rio Tinto spends on the project.
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Rio says it would be the equivalent of removing 145,000 cars from the road if it were to reduce greenhouse gas emissions by 70%. The company plans to triple the production of scandium, a mineral used in aluminum that can be used in electric vehicles, and titanium, a material used in the automotive industry, among other things.
The investment was part of the company's commitment to a net-zero future, according to the press release.
Trudeau said the investment would create good middle-class jobs, clean air and made-in-Canada tech.
The Trudeau government wants to create an EV battery eco- system on home soil. The agreements with Volkswagen and Mercedes-Benz were signed in August. The federal government signed deals with several companies to build battery factories.
Demand for electric vehicles has increased as the world looks to decarbonize, and Canada, which is rich in the minerals needed to make batteries, is eager to take advantage. The country has a lot of catching up to do. Canada was 13th out of 14 countries in the EV readiness index.
Net-zero requirements will put increasing pressure on companies to reduce emissions, which will give any company that manages to produce minerals and metals a competitive advantage. Rio Tinto claims that new technology could reduce emissions by 670,000 tonnes.
The miner hopes to increase its scandium oxide production to 12 metric tons per year from its current capacity of three metric tons without the need for additional mining.
Rio has taken a number of steps recently to increase its presence in the green energy sector.
The demonstration plant was set up in September. Rio signed a deal to acquire up to a 60-per-cent interest in the McEwen copper project in Canada.
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