Rio Tinto Acquires Majority Stake in Nemaska Lithium
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 18 2026
0mins
Should l Buy RIO?
Source: seekingalpha
- Majority Stake Acquisition: Rio Tinto's stock rose 2.9% on Wednesday after announcing it has taken a 53.9% stake in Nemaska Lithium, aiming to establish a fully integrated lithium supply chain from ore mining to chemical processing, with financial terms undisclosed.
- Provincial Government Investment: The Quebec provincial government owns 46.1% of Nemaska Lithium and plans to invest up to $200 million through share subscriptions, further supporting the company's growth initiatives.
- Future Investment Plans: Rio Tinto intends to invest over $300 million in 2026 to continue developing its lithium business in Quebec, including the Galaxy hard rock lithium project in the James Bay region, which is expected to have a lifespan of 15 to 20 years.
- Acquisition Context: Following its acquisition of Arcadium Lithium in March 2025, Rio Tinto secured a 50% interest in Nemaska, which includes a lithium hydroxide plant in Bécancour and the Whabouchi spodumene mine located in Quebec's Eeyou Istchee James Bay region.
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Analyst Views on RIO
Wall Street analysts forecast RIO stock price to fall
6 Analyst Rating
2 Buy
4 Hold
0 Sell
Moderate Buy
Current: 94.810
Low
68.00
Averages
83.70
High
129.50
Current: 94.810
Low
68.00
Averages
83.70
High
129.50
About RIO
Rio Tinto plc is a United Kingdom-based mining and materials company. It operates in over 35 countries, and its portfolio includes iron ore, copper, aluminum and a range of other minerals and materials. Its segments include Iron Ore, Aluminum, Copper, and Minerals. The Iron Ore segment includes iron ore mining and salt and gypsum production in Western Australia. Its iron ore operations in Pilbara comprise an integrated network of over 18 iron ore mines and four independent port terminals. The Aluminum segment includes bauxite mining, alumina refining, and aluminum smelting and recycling. The Copper segment includes mining and refining of copper, gold, silver, molybdenum, other by-products and licensing of extraction technologies. The Minerals segment includes mining and processing of borates, diamonds, iron concentrate and pellets from the Iron Ore Company of Canada, lithium and titanium dioxide feedstock.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Regional Market Volatility: The impact on the Gulf Cooperation Council (GCC) countries is more pronounced, as approximately 65% of their steel capacity is constrained by reliance on the Strait of Hormuz for raw material imports, meaning that direct military strikes on GCC plants would have a limited incremental effect on production levels.
- Increased Import Reliance: With domestic capacity under threat, the Middle East is expected to deepen its reliance on international markets to fill the supply gap, as the GCC is already a major net importer of steel, with China supplying over 60% of its imports, which may drive higher global blast furnace utilization rates.
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- Transport Loss Assessment: Recent weather events are estimated to have impacted iron ore shipments by approximately 8 million tonnes, but Rio Tinto has identified a pathway to recover about half of these losses, demonstrating resilience in the face of natural disasters.
- Unchanged Shipment Guidance: Despite weather challenges, Rio Tinto's shipment guidance for Pilbara iron ore in 2026 remains unchanged at 323 to 338 million tonnes, reflecting the company's confidence in future performance.
See More
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- Financing and Construction Progress: At the start of 2026, the company made significant strides in financing, further advancing the construction of the Autazes Project, indicating its ongoing commitment to mineral development.
- Industry Trend Insights: Investors are invited to check out the complete report for detailed insights on the planned timeline for 2026, current industry trends, and what goes into Exec Edge Research’s valuation analysis.
See More
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- Renewable Energy Investment: This agreement builds on Rio Tinto's recent power purchase agreements, supporting A$7.5 billion in new renewable energy and storage projects, which will drive sustainable development across Queensland.
- Job Security: The partnership not only secures manufacturing jobs in Central Queensland but also provides a foundation for the long-term competitiveness of the smelter, contributing to local economic stability.
- Positive Market Reaction: Rio Tinto's stock rose by A$2.56, or 1.73%, during trading, reflecting market optimism and confidence in the potential benefits of this partnership.
See More
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- Government Investment: The Queensland and Commonwealth governments have agreed to invest A$2 billion over the next 10 years to ensure Rio Tinto's Boyne aluminum smelter remains internationally competitive beyond its 2029 power contract expiration, thereby securing the facility's long-term operations.
- Renewable Energy Commitment: This agreement builds on Rio Tinto's recent power purchase agreements, supporting A$7.5 billion (~US$5.25 billion) in new renewable energy and storage projects in Queensland, further advancing sustainability initiatives.
- Job Security: Since its operation began in 1982, the Boyne aluminum smelter has created over 3,000 jobs in the Gladstone region, with 1,000 positions directly at the smelter, ensuring economic stability and growth in the local community.
- Green Transition Outlook: As fossil fuel costs rise, this investment positions Boyne to be among the world's first aluminum smelters powered by solar and wind energy, enhancing its competitiveness in the global aluminum market.
See More
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- Equity Increase Opportunity: Rio Tinto can increase its stake to 80% by committing an additional A$40 million or by defining a mineral resource compliant with JORC standards, significantly enhancing its mining footprint and resource control capabilities in the region.
- Management and Fee Structure: LCL will manage the project and receive a management fee equivalent to 10% of the expenditure, ensuring a steady cash flow for LCL while allowing its shareholders to retain significant exposure to exploration success and potential discoveries funded by Rio Tinto.
- Strategic Significance and Outlook: The Ono Project is located within the mineral-rich Owen Stanley Metamorphic Belt, and Rio Tinto's involvement is expected to bring substantial exploration funding, driving the potential for high-grade gold and silver discoveries, thereby reinforcing its position in the global mining market.
See More
