Rio Tinto to supply low-carbon aluminum to cablemaker Prysmian for grid greening

Rio Tinto has signed a five-year agreement to supply global cable manufacturer Prysmian with low-carbon aluminum produced using renewable hydropower from Rio Tinto’s Canadian operations, the company said Oct. 30.

The partnership aims to help build a more sustainable North American supply chain for materials to expand power grids for the energy transition, Rio Tinto said in a statement.

Power generation from renewables in the US is expected to increase from 21% in 2021 to 44% in 2050, according to the US Energy Information Administration’s 2022 Annual Energy Outlook, requiring significant investments in power grids and boosting demand for innovative materials used in electrification projects.

The low-carbon aluminum supplied by Rio Tinto will be used for advanced power cables, seen critical for grid expansion for the transition to renewable energy sources.

Aluminum is seen by some analysts as increasingly suitable and cost-effective for filling gaps that may be left by an expected market deficit of copper in the global electrification drive over coming years.

This agreement will support Prysmian’s aim to be carbon neutral by 2050, the cables maker said.

The companies have also signed a development agreement to leverage technologies, research and development capabilities, and expertise to develop multimaterial solutions in support of North America’s growing electrification demand, according to the statement.

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