CBA operates an integrated aluminum business in Brazil, with a production capacity of approximately 360,000 tonnes annually. Its operations span bauxite mining, alumina refining, and aluminum smelting. The company’s significant competitive advantage stems from its renewable energy infrastructure, featuring 23 hydroelectric generators and multiple wind farms powering its smelters, thus positioning CBA as a leader in low-carbon aluminum production. This profile aligns with Rio Tinto’s existing commitment to expanding its footprint in sustainable aluminum markets, where it produced 3.38 million tonnes in 2025 from hydropowered smelters across Canada and Australasia.
Global aluminum markets face tightening supply amid China’s self-imposed 45 million-tonne production cap, which is reducing export volumes and supporting premium pricing for green aluminum. Demand growth, driven by electric vehicles, infrastructure, and sustainability regulations—such as the EU’s Carbon Border Adjustment Mechanism—is projected at a 6.16% CAGR through 2035. The acquisition provides Rio Tinto and Chinalco with a strategically located asset in Latin America that benefits from integrated operations and renewable power, key characteristics increasingly valued as industry decarbonization intensifies.
Shares of CBA have more than doubled over the past year, reflecting investor confidence in its low-carbon strategy. The transaction aligns with global trends favoring aluminum producers with renewable energy integration and environmental compliance, reinforcing Rio Tinto and Chinalco’s positions in an evolving market landscape.
This article was curated and published as part of our South American energy market coverage.
