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New US Aluminum Smelter on Track
13 Aug
Summary
- Oklahoma smelter to start production by end of 2029.
- Project financing and energy talks are progressing well.
- Incentive program may allow 25% tariff on imports.
Century Aluminum's significant project to construct a new aluminum smelter in Inola, Oklahoma, is on schedule, with groundbreaking anticipated this year and hot metal production commencing by the end of 2029. President and CEO Jesse Gary confirmed these timelines during a recent earnings call.
Progress in the second quarter included advancements in project financing, negotiations for energy contracts, and engineering details with Bechtel. The joint venture with Emirates Global Aluminum is central to this undertaking, which aims to be the first U.S. smelter built in half a century.
The smelter is expected to double U.S. primary aluminum output, with an annual capacity of 750,000 metric tons. Importantly, the project may benefit from a recent onshoring incentive program, potentially allowing imports of primary aluminum at a 25% tariff rate, a reduction from the standard 50%.
This incentive could fund Century Aluminum's share of the project, as they intend to apply the benefit towards their capital investment. Despite these developments, local residents and politicians have voiced opposition to the smelter's construction.
