Rio Tinto has secured majority control of Nemaska Lithium with a 53.9% stake, marking a significant expansion of the mining company's lithium portfolio. The London-listed miner plans to deploy over $300 million in 2026 to develop integrated lithium operations in Quebec, positioning itself to capture growing demand from the battery and electric vehicle sectors.
The investment comes as Rio Tinto reported full-year earnings of $10.87 billion, trailing analyst expectations of $11.03 billion. The earnings miss was attributed to weakness in its iron ore segment, which faced headwinds from softer market conditions and operational challenges throughout the period.
Market reaction to the announcement proved mixed, with Rio Tinto's shares declining 3.20% during premarket trading. The selloff reflects investor concern over the lower-than-expected earnings results, though the company's strategic move into North American lithium production aligns with industry trends toward securing supply chains for battery metals.