Rio Tinto entered into an agreement with Giampaolo Group for the development of a joint venture towards the manufacture and marketing of recycled aluminium products as part of a strategy to diversify its low-carbon aluminium offering.  

As part of the agreement, Rio Tinto will acquire a 50% share in Giampaolo Group’s subsidiary Matalco, which will manage the recycling operations, while its other subsidiary, Tripple M Metal, will supply the recyclable aluminium. Rio Tinto will take on the responsibility of sales and marketing of the secondary aluminium products. Both joint venture partners will have equal representation on the board which will give oversight to the Matalco management regarding business strategies and ESG standards.  

Throughout 2023, Rio Tinto has entered into several agreements and initiated discussions surrounding the development of low-carbon products as part of its strategy to reduce its scope 1 and 2 emissions. This includes the roll-out of its proprietary AP60 low-carbon smelting technology, its collaboration with ALCOA and the Canadian Government on zero-carbon technology ELYSIS, and a partnership with BMW for the development of secure supply chains that are responsible, traceable and sustainable. 

Aluminium demand is estimated to grow by more than 20% of its current volume by 2030, with secondary sources representing a projected 40% of the production. Considering that recycled aluminium produces 95% less carbon emissions than primary aluminium production, secondary sources will be a key driver of decarbonisation of the aluminium industry. This joint venture will position Rio Tinto as an important player in the secondary aluminium market.