Rio Tinto’s $1.5 billion smelter expansion reduces emissions

Rio Tinto brings low-carbon aluminium expansion online in Quebec

Rio Tinto has begun commissioning a US$1.5 billion smelter expansion at its Complexe Arvida site in Quebec. The project will add approximately 160,000 metric tonnes of annual primary aluminium capacity using the company’s AP60 technology. Commissioning started in March 2026 and is expected to finish by the end of this year, when all 96 new pots reach full operation. Once complete, total AP60 output at the site will reach around 220,000 metric tonnes per year.

The expansion matters because it scales up a smelting process that produces significantly fewer emissions than conventional aluminium production. For UK manufacturers and suppliers watching carbon intensity across global supply chains, this type of industrial decarbonisation affects the embodied carbon in materials they source. Consequently, understanding how major producers are reducing emissions helps businesses assess their own Scope 3 footprints and prepare for increasingly detailed supply chain disclosure requirements.

Aluminium production has historically been one of the most carbon-intensive manufacturing processes. Traditional smelting releases substantial greenhouse gases during electrolysis. However, the carbon footprint varies enormously depending on the energy source and technology used. This expansion demonstrates how hydropower-backed operations in regions like Quebec can deliver materially lower emissions than coal- or gas-powered facilities elsewhere.

AP60 technology cuts emissions by half compared to older methods

Rio Tinto states that AP60 smelting technology generates approximately 1.6 tonnes of CO2e per tonne of aluminium produced. This compares with 3.2 tonnes per tonne for older Arvida technology at the same site and 10.9 tonnes per tonne for the global industry average. The emissions reduction comes from combining more efficient electrolysis with Quebec’s hydropower grid, which provides electricity with minimal carbon intensity.

In addition to greenhouse gas reductions, the company claims the upgrade will cut fine particulate matter emissions by up to 90%. Air quality improvements matter for communities near industrial sites. Furthermore, they reduce regulatory risk for operators subject to tightening environmental standards in Canada and other jurisdictions.

The AP60 process represents an interim step toward fully carbon-free aluminium production. Rio Tinto is developing next-generation technology through ELYSIS, a joint venture based in the Saguenay–Lac-Saint-Jean region. ELYSIS aims to eliminate all direct greenhouse gas emissions from the smelting process by replacing carbon anodes with inert materials. The AP60 expansion at Arvida is designed to support this transition by proving lower-carbon operations at commercial scale.

Quebec’s hydropower advantage gives the province a structural edge in low-carbon aluminium production. Electricity accounts for a large share of smelting costs and emissions. Therefore, access to renewable power allows producers in the region to offer aluminium with lower embodied carbon than competitors relying on fossil fuel grids. This matters increasingly in markets where buyers scrutinise supply chain emissions.

Capacity increase meets growing demand for lower-carbon materials

The 160,000 metric tonnes of added capacity represents a meaningful increase in Rio Tinto’s North American aluminium output. Global aluminium demand continues to grow, driven by applications in transport, construction, and renewable energy infrastructure. Meanwhile, buyers in these sectors face mounting pressure to reduce embodied carbon in materials. Consequently, producers able to demonstrate lower emissions per tonne gain competitive advantage in premium markets.

For UK businesses importing aluminium or components containing it, the carbon intensity of upstream materials directly affects their own reported emissions. Scope 3 accounting requires companies to measure and disclose emissions from purchased goods and services. As a result, sourcing decisions increasingly consider not just price and quality but also the carbon footprint of materials. Aluminium produced using hydropower and advanced smelting technology offers lower Scope 3 impact than metal from coal-powered facilities.

The project also supports approximately 100 permanent jobs locally, according to Rio Tinto. Regional employment matters for maintaining skilled workforces near major industrial sites. Moreover, it strengthens the economic case for further investment in lower-carbon production technology. Communities hosting heavy industry benefit when operators invest in upgrading facilities rather than shifting production to lower-cost regions.

Rio Tinto’s statement emphasised the strategic importance of the expansion, describing it as a major milestone for deploying state-of-the-art, low-carbon aluminium smelting technology. The company also noted that AP60 will support the transition to carbon-free aluminium electrolysis technology being developed by ELYSIS. This positions the Arvida expansion as part of a longer-term decarbonisation pathway for the company’s aluminium business.

What UK businesses should understand about aluminium carbon intensity

Several factors make this development relevant for UK companies, particularly those in manufacturing, construction, and supply chain-intensive sectors. First, embodied carbon in materials is becoming a competitive differentiator in tenders and procurement processes. Public sector buyers increasingly require suppliers to demonstrate low-carbon credentials. Private sector companies face similar expectations from investors and customers. Therefore, understanding the carbon intensity of materials helps businesses respond to these requirements.

Second, Scope 3 emissions reporting is expanding rapidly. Many UK companies must now measure and disclose emissions from their value chains under frameworks like the Task Force on Climate-related Financial Disclosures and the Science Based Targets initiative. Purchased materials often represent the largest source of Scope 3 emissions. Consequently, sourcing lower-carbon aluminium can reduce reported emissions and help companies meet reduction targets.

Third, supply chain transparency requirements are tightening. Regulations in development, such as the EU’s Carbon Border Adjustment Mechanism, will require importers to document the carbon intensity of certain materials including aluminium. Although the UK is not currently subject to CBAM, similar policies may emerge. Businesses that track embodied carbon in their supply chains now will be better prepared for future regulatory requirements.

Fourth, customer and investor expectations around sustainability are rising. Companies selling consumer goods, vehicles, or construction products face questions about the environmental impact of their materials. Demonstrating use of lower-carbon aluminium provides evidence of climate action. Similarly, investors increasingly assess how companies manage climate-related risks and opportunities across their operations and supply chains.

Fifth, material traceability is becoming more important. Knowing where aluminium was produced and how much carbon was emitted during smelting requires robust supply chain data. Producers investing in lower-carbon technology often provide better documentation of emissions intensity. This helps buyers verify claims and report accurately on their own footprints.

Key facts about the Arvida expansion

• Rio Tinto’s AP60 smelter expansion at Complexe Arvida in Saguenay, Quebec, represents a US$1.5 billion investment in lower-carbon aluminium production.
• Commissioning began in March 2026 and is expected to complete by the end of 2026 when all 96 new pots reach full operation.
• The expansion adds approximately 160,000 metric tonnes of annual primary aluminium capacity, bringing total AP60 output at the site to around 220,000 metric tonnes per year.
• AP60 technology paired with Quebec hydropower generates about 1.6 tonnes of CO2e per tonne of aluminium, compared with 3.2 tonnes for older Arvida technology and 10.9 tonnes for the global industry average.
• The upgrade is expected to cut fine particulate matter emissions by up to 90 percent, delivering air quality improvements alongside greenhouse gas reductions.
• The project supports approximately 100 permanent jobs locally and strengthens North American supply chains for lower-carbon aluminium.
• Rio Tinto describes the expansion as a step toward carbon-free aluminium electrolysis through its ELYSIS joint venture, which is developing next-generation smelting technology in the same region.

How this affects procurement and supply chain planning

UK businesses sourcing aluminium or aluminium-intensive components should consider how developments like the Arvida expansion affect their supply chain options. Lower-carbon aluminium is becoming more available, but it requires buyers to ask suppliers about emissions intensity and request supporting data. Many suppliers cannot yet provide detailed carbon footprint information for materials. However, asking these questions encourages transparency and signals that emissions matter in purchasing decisions.

For companies subject to public sector procurement requirements, understanding material carbon intensity is increasingly necessary. Procurement Policy Note 06/21 requires central government suppliers to publish carbon reduction plans and report emissions including Scope 3. Demonstrating knowledge of embodied carbon in materials helps meet these requirements. Similarly, businesses bidding for contracts with local authorities or other public bodies may face questions about the sustainability of their supply chains.

We work with UK manufacturers and suppliers helping them measure and reduce supply chain emissions. Our net-zero program for carbon reporting compliance supports businesses in understanding their Scope 3 footprint and identifying opportunities to source lower-carbon materials. This includes guidance on engaging suppliers, requesting emissions data, and documenting supply chain carbon intensity for reporting and tender purposes.

Businesses should also consider regional differences in aluminium carbon intensity when evaluating suppliers. Metal produced in regions with renewable electricity grids typically has lower embodied carbon than aluminium from coal-dependent regions. Asking suppliers where aluminium was smelted and what energy source was used provides useful information for Scope 3 calculations. Suppliers may not always have this information readily available, but requesting it encourages better data collection throughout the supply chain.

Another practical consideration is the price premium for lower-carbon aluminium. Producers investing in advanced technology and renewable energy often charge more than competitors using cheaper, higher-emission processes. Buyers need to weigh the cost difference against the value of reduced emissions. In some cases, lower Scope 3 emissions can improve a company’s competitive position in tenders or with sustainability-focused customers. In other cases, the premium may be harder to justify. Therefore, businesses should evaluate these trade-offs based on their specific market position and emissions reduction targets.

Traceability systems for aluminium are improving but remain incomplete. Some producers offer certified low-carbon aluminium with verified emissions data. Others provide general claims without robust documentation. Buyers should ask for third-party verification of emissions intensity claims where possible. Standards such as those from the Aluminium Stewardship Initiative provide frameworks for assessing responsible production, including greenhouse gas performance.

Where to find further information on aluminium emissions and supply chain carbon

The Rio Tinto announcement on the AP60 expansion provides company perspective on the project and its emissions performance. However, businesses seeking independent information on aluminium carbon intensity and supply chain emissions should consult authoritative sources.

The UK government provides guidance on measuring and reporting greenhouse gas emissions through resources published by the Department for Energy Security and Net Zero. These include methodologies for calculating Scope 3 emissions from purchased goods and services. The government’s greenhouse gas conversion factors offer data on emissions intensity for various materials and processes, which can support supply chain carbon calculations.

For businesses subject to Procurement Policy Note 06/21, the Cabinet Office guidance on PPN 06/21 explains carbon reduction plan requirements for central government suppliers. This includes expectations around Scope 3 reporting and supply chain emissions.

The Aluminium Stewardship Initiative offers standards and certification for responsible aluminium production, including greenhouse gas performance. Their performance standards provide benchmarks for assessing producers’ environmental credentials. The International Aluminium Institute publishes data on global aluminium production and emissions trends, which can help businesses understand industry context.

Our compliance support for ESG and carbon reporting helps UK businesses navigate supply chain emissions measurement and disclosure requirements. We provide practical guidance on engaging suppliers, collecting emissions data, and meeting regulatory and procurement standards.