Rio Tinto Successfully Finalizes The Purchase Of A 50% Stake in Matalco, Bolstering Its Position in The Expanding Recycled Aluminum Market.

Following the receipt of all necessary regulatory approvals, Rio Tinto and the Giampaolo Group have successfully concluded the formation of the Matalco joint venture. In a significant transaction, Rio Tinto has completed the acquisition of a 50% stake in Matalco from the Giampaolo Group for a sum of US$700 million.

The establishment of this joint venture strategically leverages the strengths of major players in both primary and secondary aluminum production in North America. The primary objective is to address the escalating demand for low-carbon aluminum, aligning with environmental sustainability goals.

This investment positions Rio Tinto to expand its presence in the US aluminum market, particularly as the demand for recycled aluminum in the United States is anticipated to surge by over 70% from 2022 to 2032. Concurrently, the global demand for recycled aluminum is projected to experience a growth of more than 60% over the same period.

Under the joint venture, Matalco will retain operational control over its six plants located in the United States and Canada. These facilities boast an annual production capacity of approximately 900,000 tons of recycled aluminum, contributing significantly to meeting the increasing demand for sustainable aluminum products in the North American market.