Industry Minister Mélanie Joly says new federal investments announced in Quebec are intended to strengthen Canada’s aluminum supply chain and support more processing at home.
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Industry Minister Mélanie Joly says newly announced federal funding is a first step toward reducing the Canadian aluminum sector’s dependence on the United States and building more aluminum processing capacity in Canada.
Speaking in La Baie, Que., Joly announced more than $193 million in federal support for projects at four Rio Tinto facilities in the Saguenay–Lac-Saint-Jean region, as well as at the Alouette aluminum smelter in Sept-Îles, Que. She said the aluminum industry is “a strategic industry for our country and for Canadian sovereignty,” adding that the government needs to produce more of what Canada’s economy requires within Canada.
Joly linked the push for greater domestic processing to recent tariff impacts and what she called the unpredictability of American policy. She said the price of aluminum products is inflated when aluminum enters the United States and again when it returns to Canada, pointing to a 50 per cent U.S. tariff on Canadian aluminum and a 50 per cent Canadian tariff on processed aluminum from the United States imposed since Sept. 8, for a total surcharge of 100 per cent. She also noted that the Canadian tariff imposed in March 2025 was 25 per cent before Sept. 8.
Joly said it is not “normal” for most Canadian aluminum to be processed in the United States and then return at a higher cost to Canadian companies. She said the government wants to strengthen the aluminum supply chain by supporting rolling mill projects in sectors that need more processed aluminum, including agri-food, beverages, and aerospace.
The minister also said Ottawa is looking to work with entrepreneurs interested in developing rolling mills, including through taking equity stakes. She added that the federal government wants to offer procurement contracts, including defence-related ones in the aerospace sector, to create a business model that supports rolling mill investment.
Joly said Canada has nine primary aluminum smelters, with eight located in Quebec and one in British Columbia.
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