Canada announces $193 million for aluminum industry modernization

Canadian Industry Minister Mélanie Joly has announced more than $193 million in federal funding to support projects at four Rio Tinto facilities in the Saguenay-Lac-Saint-Jean region and the Alouette aluminum smelter in Sept-Îles. The investments, which are part of a broader $955 million total investment plan, aim to strengthen the domestic aluminum supply chain and reduce reliance on the United States.

Aluminerie Alouette will use $28.5 million from the Strategic Response Fund to support modernization efforts, including improvements to carbon anodes and bath cover granulometry. These technical upgrades are intended to increase productivity, energy efficiency, and reduce environmental emissions.

Minister Joly emphasized that the aluminum industry is a strategic sector for Canadian sovereignty. She noted that current trade tensions and tariffs—including a 50 percent U.S. tariff on Canadian aluminum and a reciprocal 50 percent Canadian tariff on processed U.S. aluminum—have created economic upheaval. The government intends to use these investments as a first step toward building domestic capacity, such as aluminum rolling mills, to serve sectors like aerospace and agri-food.