Canada Growth Fund Inc. (CGF) and Rio Tinto Iron and Titanium Inc. have announced a transaction to advance the Canadian production of scandium oxide in Sorel-Tracy, Québec. CGF will invest approximately C$25 million to support production at North America's sole facility capable of supplying this material. This partnership aims to bolster the supply of a critical mineral.
The investment will expand the facility's nameplate capacity to 9 tonnes of scandium oxide per year. This increase in production is crucial for securing a stable supply of scandium, which is vital for defense and technology sectors. The transaction aligns with broader efforts to reduce dependency on foreign sources for critical materials.
This major investment and strategic partnership with the Canadian government underscore the importance of scandium to national interests. For Rio Tinto, it provides capital and government backing to expand its critical minerals business. The increased capacity positions the company as a key supplier in a strategically important market.
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