Rio Tinto and Prysmian enter aluminium supply partnership

Rio Tinto (ASX:RIO) and cable solution provider Prysmian have partnered up to build a more sustainable North American supply chain for materials needed to expand power grids for the energy transition.

Power generation from renewables in the United States is expected to increase from 21% in 2021 to 44% in 2050, requiring significant investments in power grids and boosting demand for innovative materials used in electrification projects.

Under the five-year supply agreement, Rio will supply low-carbon aluminium made with renewable hydropower from its Canadian operations. This will support Prysmian’s decarbonisation drive towards its objective of being carbon neutral by 2050.

Rio Tinto vice president of aluminium sales Amy Abraham says the company is proud to work with Prysmian.

“We are proud to work together with Prysmian to strengthen their North American supply chain for aluminium produced to the highest sustainability standards and develop the materials needed to produce more advanced power cables,” she said.

“These types of products are critical for the power grid expansion that is needed for the transition to renewable energy sources and a low carbon future.”

Rio and Prysmian have also signed a joint development agreement to leverage their technologies, research and development capabilities, and technical expertise to develop multi-material solutions to support North America’s growing electrification demand.

Prysmian North American chief executive Andrea Pirondini says the aluminium will guide the company towards a more sustainable value chain.

“With strategic partners such as Rio Tinto, Prysmian is committed to achieving net-zero emissions across our entire value chain by 2050,” she said.