Rio Tinto and its partners have secured A$2.5 billion in federal and state funding to keep Australia's largest aluminum smelter operating, as soaring electricity costs, over 40% of operating expenses, threaten its future.

The deal requires A$1.1 billion in new investment, grid-flexibility upgrades to cut power use during peak demand, and A$100 million for emissions-reduction measures. 

Prime Minister Anthony Albanese pledged support last December after Rio warned of closure when the current power contract ends later this decade.