11:26 AM EDT, 06/28/2024 (MT Newswires) -- Rio Tinto (RIO) said Friday it will install carbon free aluminium smelting cells at its Arvida smelter in Quebec, Canada, using a technology license from its Elysis joint venture with Alcoa.

The company said it will build a demonstration plant that will be owned by a new JV in which Rio Tinto and Quebec's government will invest $179 million and $106 million, respectively.

The new plant, which will be near the Arvida smelter, will have the capacity to produce up to 2,500 tonnes of aluminium a year without direct greenhouse gas emissions, Rio Tinto said, adding first production is targeted by 2027.

Elysis JV partner Alcoa will have the option to buy from Rio Tinto part of the aluminium produced during the first four years at the Arvida demonstration plant via an offtake agreement, Rio Tinto said.

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