Rio Tinto has joined forces with Swedish investment company Vargas, Mitsubishi and other partners to explore a low-carbon aluminium project in Finland. As part of this strategic partnership, Rio Tinto will provide access to its AP60 aluminium smelting technology, which will be deployed for the first time outside of Quebec, Canada.
The partnership, known as Arctial, will begin by conducting a feasibility study and environmental impact assessment for a potential greenfield aluminium project in Finland’s Kokkola region. If successful, this project would mark the first primary aluminium development in continental Europe in over 30 years.
In collaboration with Fortum, a carbon-free energy provider in the Nordic region, the project will explore sourcing competitive, low-carbon energy from existing and new production assets. Local and industry partners, including Finnish Industry Investment and leading international technology companies, will also be involved.
Rio Tinto Aluminium’s CEO, Jérôme Pécresse, emphasized the company’s commitment to becoming a significant investor and off-taker in the partnership, which aligns with its strategy to strengthen its position in the low-carbon aluminium market. By combining AP60 technology with renewable energy sources, Rio Tinto aims to produce low-carbon aluminium that will support Europe’s industrial growth and contribute to the energy transition.
In addition to its work in aluminium, Rio Tinto has set ambitious goals in the copper sector. The company plans to produce 1 million tonnes per annum (mtpa) of copper by 2030 as part of its broader strategy to lead in energy transition materials. At Rio Tinto’s 2024 Investor Seminar, CEO Jakob Stausholm outlined the company’s commitment to expanding its copper portfolio, with a significant boost expected from its flagship Oyu Tolgoi copper mine in Mongolia, where production is set to increase by over 50% next year.
Rio Tinto expects its group copper output to rise to between 780,000 and 850,000 tonnes in 2025, up from an anticipated 700,000 to 720,000 tonnes in 2024. Additionally, the company has committed to decarbonisation, maintaining its capital spending guidance for decarbonisation projects at $5 billion to $6 billion by 2030.
For the 2025 financial year, Rio Tinto raised its total capital expenditure guidance to $11 billion, up from an earlier forecast of $10 billion, signaling continued investment in its energy transition and decarbonisation efforts.
