Rio Tinto signs new partnership agreement to investigate a low-carbon aluminum low-carbon aluminum project in Finland

Rio Tinto $RIO (-0.87%) has signed a partnership agreement with Swedish investment company Vargas, Mitsubishi Corporation and other international and local industry partners to explore the possibility of low-carbon greenfield aluminum production in Finland.

As a strategic industry partner, Rio Tinto will provide the Arctial partnership with access to its proven, industry-leading AP60 technology and support the first deployment of AP60 in an aluminum smelter outside of Quebec, Canada. Rio Tinto's AP60 technology is one of the most efficient aluminum smelting technologies currently available on a commercial scale.

As a first step, Arctial will conduct a feasibility study and environmental impact assessment for a potential new aluminum project in Kokkola, Finland.

If the project is successful, it would be the first development of primary aluminum in continental Europe in over 30 years. Together with Fortum, the leading supplier of zero-carbon energy in the Nordic countries, the project will explore the sourcing of competitive low-carbon energy from existing and new production facilities. Other local and industry partners include the Finnish Industrial Investment (TESI) and international technology leaders.

Rio Tinto Aluminium CEO Jérôme Pécresse said: "We are committed to being a major investor and buyer in this partnership, which is in line with our strategy to strengthen our global leadership in low-carbon aluminum."

"The combination of our AP60 technology with non-fossil fuel-based electricity represents an attractive opportunity to provide low-carbon aluminum that will strengthen Europe's industrial base and support the production capacity needed for the energy transition."