After obtaining all regulatory approvals, Rio Tinto and Giampaolo Group have completed a deal to form the Matalco joint venture. Rio Tinto has acquired a 50% stake in Matalco from Giampaolo Group for US$700 million.

The joint venture will combine the advantages of the major producers of primary and secondary aluminum in North America to meet the growing demand for low-carbon aluminum.

With the investment, Rio Tinto will expand its share in the US aluminum market. The US’ recycled aluminum demand was expected to grow by over 70% from 2022 to 2032, and the global demand for recycled aluminum will also rise by more than 60% during the period.

Matalco will continue operating the six plants in the US and Canada, which have an annual production capacity of recycled aluminum of around 900,000 tons.