Key Highlights

  • Media reports say Rio Tinto is reducing its workforce at the Becancour lithium hydroxide plant, with 68 workers to be laid off by December.
  • Local media have reported that the C$3.6 billion Nemaska project needs a further C$500 million to complete construction, which Rio has not confirmed.
  • Construction has slowed since March, when Rio reviewed the development strategy and reduced site activity.
  • A decision on development Options for the Whabouchi and Galaxy lithium deposits is expected in the fourth quarter of 2026.

Rio Tinto (ASX:RIO) is reducing its workforce at the Bécancour lithium hydroxide plant in Québec, part of the Nemaska Lithium Project, according to media reports published on 10 and 11 November 2026. Construction was reported to be slowing, and funding challenges were said to threaten completion of the facility.

The office of Québec's Economic Development Minister confirmed that 68 workers would be laid off by December.

The funding question

Nemaska Lithium is jointly owned by Rio Tinto and the Québec Government. Local media have reported that the C$3.6 billion project needs another C$500 million to complete construction, and that Rio faces questions over whether to commit further funding. Those estimates have been reported by the media rather than confirmed by Rio Tinto.

Earlier in November, Québec's Economic Development Minister, Stéphane Paquet, ruled out additional government funding, saying the province would look for other ways to keep the project moving while protecting taxpayers. Local reports say Investissement Québec is considering options for its stake, including bringing in another investor.

The project has already received about C$1.2 billion in public funding.

How Rio came to own Nemaska

Rio Tinto gained an initial 50% interest in Nemaska through its US$6.7 billion Acquisition of Arcadium Lithium in 2025. It later increased its ownership to 53.9% and took direct management control in February 2026.

The project links the Whabouchi spodumene deposit in northern Québec with Downstream processing at Bécancour, where spodumene concentrate would be converted into battery-grade lithium hydroxide. Nemaska is expected to produce the equivalent of 28,000 tonnes of lithium carbonate a year, with first production previously targeted for 2028.

A slowdown already under way

Construction has slowed considerably since March, when Rio announced a review of the project's development strategy and reduced site activity. At that time, the company said the Facility was more than 70% complete and that slowing down would allow it to optimise the project.

In its third-quarter operational review, Rio said construction remained at reduced levels while asset preservation and site maintenance continued. It also said it was reviewing development options for the Whabouchi and Galaxy lithium deposits, with a decision expected in the fourth quarter of 2026.

Why it matters

The Job cuts are small in the context of Rio Tinto's global workforce, but they highlight the pressure on lithium chemical projects in North America after a prolonged period of low prices. Downstream conversion plants are expensive, and their Economics depend on both lithium prices and the cost of feedstock.

For Québec, Nemaska is central to ambitions to build an electric vehicle Supply chain. For Rio, the decision on further funding will indicate how it intends to balance its lithium growth plans against Capital discipline.

What remains unclear

Rio has not publicly confirmed the reported C$500 million requirement or its intentions for further funding. The government's options for its stake are also unresolved.

The episode also reflects a broader recalibration across the lithium sector. Several producers and developers have slowed projects, deferred expansions or sought partners after lithium prices fell sharply from their 2022 peaks. Rio Tinto first entered lithium at scale through the Arcadium deal, and how it manages Nemaska will be closely watched as an indication of its longer-term commitment to the commodity.

What comes next

The fourth-quarter decision on Whabouchi and Galaxy is the key scheduled milestone. Any change to Rio's lithium strategy, or to Investissement Québec's position, would be expected to be disclosed through official channels and would clarify the outlook for Bécancour.