Rio’s scandium expansion

Rio Tinto is boosting Canadian scandium production through a deal with the Canada Growth Fund (CGF), valued at $27 million ($C25 million).

The move will expand capacity at the the Sorel-Tracy demonstration plant in Quebec to nine tonnes per annum, securing North America’s supply of this rare and strategically important metal.

Scandium is critical for high-performance aluminium alloys, solid oxide fuel cells and advanced technologies. Its properties enhance flexibility, heat and corrosion resistance and reduce weight,  making it essential for defence platforms, lightweight vehicles and clean-energy solutions.

“Rio Tinto is pleased to partner with CGF and the Government of Canada to expand our Canadian production of scandium oxide, a high-performance material used for advanced manufacturing and energy generation,” Rio Tinto iron and titanium and diamonds managing director Sophie Bergeron said.

“This project leverages an innovative process developed in Canada by our scientists, fully supplied from our domestic mining and metallurgical assets to provide a secure North American supply of this critical mineral.”

The Sorel-Tracy demonstration plant, operational since 2022, currently supplies the entirety of North American scandium. The facility uses a breakthrough process to extract high-purity scandium directly from titanium dioxide waste streams, eliminating additional mining and minimising environmental impact.

“With its unique investment mandate, CGF invests into innovative transaction structures that directly support projects of strategic priorities,” CGF President and chief executive officer Yannick Beaudoin said.

“This transaction, completed alongside an established operating partner, enables us to unlock new models for risk-sharing and value creation that advance Canada’s supply chain resilience strategy.”

The Canadian Government will enter an offtake agreement to purchase a volume of scandium and a marketing and storage agreement to manage the material.