Quebec's $1.2B Nemaska Battery Plant Stalls: Rio Tinto Weighs Exit as Public Money Hangs in the Balance

Quebec's second major EV battery gamble is coming apart at the seams. According to CBC News, construction at the Nemaska Lithium battery plant near Bécancour has effectively ground to a halt, with most workers no longer showing up to the site. The project, announced in 2023 under the Coalition Avenir Québec (CAQ) government, was meant to anchor Canada's domestic battery supply chain — but Rio Tinto, the 54% majority shareholder, is now openly weighing whether to proceed.

What's happening at Bécancour

Rio Tinto confirmed in a statement to Radio-Canada that it "continues to evaluate the best development option for Nemaska Lithium — including the scope and phasing of the Bécancour project — based on market conditions, the project's economic parameters, and capital requirements." In practical terms, the company is not committing to the remaining construction spend. The plant was reportedly 70% complete when work last paused in March 2026, according to Rio Tinto's earlier disclosure.

The Quebec government holds the remaining 46% stake and has sunk $1.2 billion in public money into the venture. New environment minister Stéphane Paquet, speaking on Thursday, acknowledged the risk: "I am worried, and I think Quebecers have to be worried too about their investment there." He confirmed there is "no plan from the Quebec government to put more money in this project."

Why it matters for the Canadian EV supply chain

• Domestic battery gap: Without a second operational plant in Quebec, Canada remains dependent on imports for EV battery cells, undermining the federal government's supply-chain diversification goals.
• Northvolt echo: The situation mirrors the 2025 Northvolt collapse, where Quebec invested $270 million with nothing to show. The Auditor General has already slammed the province's "unplanned approach" to the battery sector.
• Political fallout: The new Parti Québécois government inherits a CAQ-era project in distress. Québec Solidaire's energy critic Alexandre Leduc called the situation a cautionary tale, warning against repeating the same errors with data-centre subsidies.

What to watch

Rio Tinto has not given a deadline for its "evaluation." The Bécancour mayor, Pascal Blondin, says he has not received formal notice of a shutdown but is "trying to stay optimistic." If the project is formally wound down, the $1.2B question becomes a potential provincial fiscal item — and a political one — in a province where the new PQ government is still consolidating power.

For Canadian EV buyers and investors, the near-term impact is limited: no Nemaska cells are in production today. But the long-term signal is that public co-investment in gigafactories carries real execution risk, and the "build it and they will come" playbook may need a more disciplined capital structure.

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