Aluminerie Alouette plans to spend at least $1.5 billion to upgrade its Sept-Îles plant over the next 20 years. (Photo: The Aluminerie Alouette facility in Sept-Îles, taken on May 21, 2019 – Jacques Boissinot / The Canadian Press)
A major aluminum plant in Quebec has just announced plans to pour at least $1.5 billion into its North Shore operations over the next two decades. The investment comes after Aluminerie Alouette, one of the largest aluminum producers in Canada, reached an electricity rate deal with Hydro-Québec that will last until the end of 2045.
The announcement was made at a press event in Sept-Îles, where company officials detailed how this long-term agreement will fuel upgrades and modernization efforts at their facilities. As part of the commitment, the company will invest $750 million by 2030, with the rest of the amount spread out until 2045.
Premier François Legault, who attended the event, called the deal a strong step forward for Quebec’s aluminum sector. He highlighted that the agreement is especially important now, considering the current challenges faced by the industry, including a steep 50% tariff on aluminum exports to the U.S.
Electricity Deal Benefits Both Sides
The new agreement isn’t just about stabilizing energy costs for Aluminerie Alouette—it’s also designed to help the province. Hydro-Québec will be able to earn a share of the company’s profits during periods when global aluminum prices rise. In return, the smelter benefits from more affordable power when prices dip, making it easier to stay afloat during market downturns.
This flexible pricing model is being seen as a win-win strategy. It gives the company confidence to plan long-term and gives the province a share in its success.
Jobs, Production, and Global Reach
The smelter in Sept-Îles employs about 950 workers and produces around 630,000 tons of aluminum each year. That’s nearly one-fifth of Quebec’s total aluminum output. Its high-capacity production makes it a major player not only in Canada but also in the global market.
The investment is expected to enhance job stability in the region and may even create additional employment opportunities as upgrades and improvements are implemented over the years.
Backed by Industry Giant Rio Tinto
Aluminerie Alouette isn’t going it alone. The multinational mining corporation Rio Tinto holds a 40% ownership stake in the plant. Their involvement brings global expertise and strong financial backing, adding weight to the company’s expansion plans.
This long-term vision reflects growing confidence in Quebec’s industrial landscape, particularly as the province seeks to maintain its position as a top aluminum producer in North America amid external pressures.
