The investment will increase the nominal capacity of the Rio Tinto plant to 9 tons per year.
Scandium is used in high-performance aluminum alloys, solid oxide fuel cells and other advanced technologies. Rio Tinto's demonstration plant $RIO (-1,08%)
$RIO (+0,6%)which came on stream in 2022, currently meets all North American scandium demand and is one of the few significant sources within the OECD.
"With its unique investment mandate, the Canada Growth Fund (CGF) invests in innovative transaction structures that directly support strategically important projects. This transaction, completed with an established operating partner, allows us to develop new risk-sharing and value creation models that advance Canada's strategy to strengthen supply chain resilience," said Yannick Beaudoin, President and CEO of Canada Growth Fund Investment Management.
"Our commitment to the project demonstrates how targeted investment and disciplined structuring can bring tangible benefits to Canadian industry and the economy," he added.
"We are very pleased to bring PSP Investments' rigorous investment process, extensive expertise and independent governance model to the implementation of CGF's mandate," said Deborah Orida, President and CEO of PSP Investments. "With today's announcement, CGF continues to deliver innovative solutions that enable the development of important projects, enhance the investment climate in Canada and support PSP's foresight into the development of the critical minerals supply chain."
"Rio Tinto is pleased to partner with CGF and the Canadian government to expand our Canadian production of scandium oxide, a high-performance material for advanced manufacturing and power generation," said Sophie Bergeron, Managing Director of Rio Tinto Iron and Titanium and Diamonds.
Rio Tinto has developed a process to recover high-purity scandium from waste streams from its titanium dioxide facilities in Québec, avoiding new mining areas and minimizing environmental impact.
The transaction supports the G7 Critical Minerals Action Plan, which aims to reduce dependence on unstable supply chains and coordinate offtake and price stabilization mechanisms. As part of the agreement, the Canadian government will enter into commercial arrangements with Rio Tinto, including an offtake agreement and a scandium marketing and storage agreement.