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Ottawa Plans Aid for Aluminum Industry as Alouette Secures $1.5 Billion Hydro-Québec Deal

The support comes after President Trump’s 50% steel and aluminum tariffs, with Ottawa set to unveil countermeasures on July 21.

Aluminerie Alouette will invest at least $1.5 billion in its facilities in Sept-Îles over the next 20 years. An archive photo of the Aluminerie Alouette plant on Tuesday, May 21, 2019, in Sept-Îles. THE CANADIAN PRESS/Jacques Boissinot
Large aluminum billets are stored at Magna Aluminum Profile in Salaberry de Valleyfield, Quebec, Canada, June 11, 2025. REUTERS/Evan Buhler/File Photo
Rio Tinto says it employs some 4,000 people in the Saguenay–Lac-Saint-Jean region and has plans to build a new $1.4-billion aluminum smelter in the area.
Quebec Premier Francois Legault speaks at a news conference at his office in Quebec City, Friday, June 6, 2025. THE CANADIAN PRESS/Jacques Boissinot

Overview

  • Ottawa has begun designing liquidity assistance for major smelters, negotiating directly with Rio Tinto to offset U.S. tariff-driven cash-flow challenges.
  • Aluminerie Alouette formalized a 20-year, $1.5 billion capital plan thanks to an agreement in principle on electricity rates with Hydro-Québec through 2045.
  • Canada promises its own trade reprisals on U.S. aluminum and steel imports, scheduling a formal response by July 21 based on bilateral talks.
  • President Trump’s decision to double metal tariffs to 50% last month has heightened cost pressures across Quebec’s Aluminum Valley.
  • The Saguenay–Lac-Saint-Jean region, which houses several smelters and relies on cheap hydro power, stands at the centre of Ottawa’s industrial defence strategy.