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Rio Tinto’s (RIO) Aluminerie Alouette Invests $1.1 Billion in Quebec Aluminum Smelter Upgrade

Rio Tinto Group (NYSE:RIO) is one of the top 10 materials stocks to buy according to analysts. On July 2, Aluminerie Alouette, an aluminum producer partially owned by Rio Tinto Plc, announced plans to invest up to C$1.5 billion (approximately $1.1 billion) to modernize its operations in northern Quebec, according to sources familiar with the matter.

A worker in full safety gear operating an excavator in a mining operation.

The Sept-Îles smelter employs approximately 900 people and has an annual production capacity of 630,000 metric tons of primary aluminum. The investment will fund technological upgrades to the smelter’s infrastructure, energy efficiency improvements in production processes, enhanced production capabilities to maintain competitiveness, and strengthened environmental controls and monitoring systems. Bloomberg cited sources who said that Aluminerie Alouette has secured a new electricity supply deal with Hydro-Québec, the Quebec government-owned power utility, to support the project.

The modernized project is expected to support 900 direct jobs at the smelter. It will also create thousands of indirect jobs in the regional supply chain, enhance the tax base for municipal and provincial governments, and provide supply chain security for industries like aerospace and beverage packaging.

Rio Tinto Group (NYSE:RIO) is classified as a material stock because it operates in the basic materials sector, focusing on the exploration, mining, and processing of key industrial metals like iron ore, aluminum, copper, lithium, and titanium dioxide. With operations spanning over 35 countries, the company plays a crucial role in supplying raw materials for global infrastructure, manufacturing, and clean energy. Among its standout assets are the Pilbara iron ore mines in Australia and the Oyu Tolgoi copper-gold mine in Mongolia. Rio Tinto plays a pivotal role in the energy transition, particularly through its strategic investments in battery materials, such as lithium.

While we acknowledge the potential of RIO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RIO and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best Organic Food and Farming Stocks to Buy Now and 13 Best Blue Chip Stocks to Buy According to Analysts.

Disclosure: None.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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