Joly announces $193 million for aluminum projects and plan to build rolling mill in Canada Industry Minister Mélanie Joly announced more than $193 million in federal funding for aluminum projects in Quebec and said Canada should build rolling mills to reduce dependence on the United States. Industry Minister Mélanie Joly says new federal investments announced Friday are a first step toward reducing the Canadian aluminum sector's dependence on the United States. Joly, who is also the minister responsible for economic development in Quebec, announced more than $193 million in federal funding for aluminum projects. The funding covers projects at four Rio Tinto facilities in the Saguenay-Lac-Saint-Jean region and at the Alouette aluminum smelter in Sept-Îles, Que. Joly made the announcement in La Baie, Que. She said the government sees aluminum as a strategic sector for the Canadian economy.Building Rolling Mills Reduces US DependenceThe minister said Canada should build rolling mills so more aluminum is processed at home. She said it is not normal that most Canadian aluminum is processed in the United States and then returns at a higher cost. She said several sectors need more processed aluminum and have rolling mill projects of their own. Joly said those sectors include agri-food, beverages and aerospace.She said Canada wants to produce aluminum cans at home and aircraft and aerospace parts at home. She also said Ottawa wants to attract key investments in aluminum processing for the defence sector. The minister cited economic upheaval caused by tariffs and the unpredictability of the American government. She said that in this new context Canada must be able to produce more of what its economy needs right here in Canada.She said the aluminum industry is much more than an economic driver. Joly said aluminum is also a strategic industry for the country and for Canadian sovereignty. She pointed out that the price of aluminum products is inflated first by tariffs when they enter the United States and a second time when that aluminum returns to Canada. The United States imposes a 50 per cent tariff on Canadian aluminum.Fifty Percent Tariff On Processed AluminumSince Sept. 8, Canada has imposed a 50 per cent tariff on processed aluminum from the United States. That results in a total surcharge of 100 per cent. Joly stressed that the government sees aluminum as a strategic sector for the Canadian economy and that she sees the importance of building rolling mills in Canada. On top of providing financial support to producers, she said the government wants to work with entrepreneurs interested in developing these rolling mills.Ottawa is also willing to take on equity stakes in such projects. Joly said Ottawa wants to be able to offer procurement contracts, certainly defence-related ones, for key components in the aerospace sector. She said the goal is to create a business model that makes sense for a rolling mill. Canada has nine primary aluminum smelters.Eight of them are located in Quebec and the other is in British Columbia. The federal funding announced Friday is part of the government's push to expand domestic aluminum processing capacity. Joly said the investments are a first step toward reducing the sector's dependence on the United States. She said the government wants to work with entrepreneurs and take on equity stakes to develop rolling mills.Procurement Contracts Help Create Viable ModelShe said procurement contracts, especially defence-related ones, could help create a viable business model. The announcement took place in La Baie, Que. The funding is directed to projects at four Rio Tinto facilities in the Saguenay-Lac-Saint-Jean region and at the Alouette aluminum smelter in Sept-Îles, Que. Joly said aluminum is a strategic industry for Canadian sovereignty.