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Oklahoma Lands Huge Aluminum Smelter Deal
27 Jan
Summary
- Century Aluminum and Emirates Global Aluminum partner on Oklahoma smelter.
- The new smelter aims to be the largest in the U.S. annually.
- Electricity costs pose a challenge for U.S. smelter operations.
Century Aluminum has shifted its strategy, partnering with Emirates Global Aluminum to construct a new aluminum smelter in Oklahoma. Previously, Century Aluminum had explored building the facility independently. Under the revised agreement, Century Aluminum will hold a 40% stake, with Emirates Global Aluminum owning the remaining 60% of the joint venture.
This new smelter is projected to have a significant production capacity of 750,000 metric tons of aluminum each year, which would establish it as the largest smelter in the United States. Currently, most U.S. aluminum production relies on recycled scrap.
Operating aluminum smelters in the U.S. has proven difficult for decades, primarily due to the substantial electricity required for aluminum production. This high energy demand has made U.S. smelters less competitive globally. Emirates Global Aluminum has not yet finalized a long-term electricity supply agreement for the Oklahoma site. Century Aluminum had spent approximately two years seeking such a contract but faced intense competition from data centers willing to pay higher rates for power.
