Rio Tinto bags up to $13.9 million from Canada for gallium metal project

March 3 (Reuters) - Rio Tinto RIO.AX said on Monday the Government of Canada has conditionally approved a non-repayable contribution of up to C$18.95 million ($13.86 million) for the miner's gallium metal research and development project.

This follows the C$7 million committed by the Government of Québec in December 2024, according to the firm's statement.

China's clampdown on critical minerals such as gallium, used in defense applications and semiconductors, has spurred the West to build its own domestic supplies of the elements.

"Extracting gallium from our existing refining process would create additional value from this asset and strengthen the North American supply chain for gallium, a critical mineral used in everything from high-performance radars, to smartphones, electric cars and laptops," said Rio Tinto's aluminum and lithium chief executive, Jerome Pecresse.

The miner will begin building a pilot plant in Saguenay, Canada, with a capacity of up to 4 tonnes of gallium per year. The plant is expected to be operational in 2027.

Rio Tinto said a transition to a commercial-scale plant could lift its annual production of primary gallium to 40 tonnes, representing about 5% of global output.

($1 = 1.3668 Canadian dollars)