Century Aluminum is expected to take a 40% stake in the planned $4 billion Oklahoma Smelters plant by Emirates Global Aluminum. The first primary aluminum plant to be built in the country in almost 50 years, the companies said on Monday. On the other hand, EGA will keep 60% stake of the announced plant. The companies did not reveal financial terms of the deal.

EGA had also said last year that it expected to invest around $4 billion to develop the project. With Century on board, the smelter’s planned capacity has been increased to 750,000 metric tons of aluminum per year. This is from the previous 600,000 tons previously which would more than double U.S. output of the metal. Construction of the smelter will start by year-end, with production to begin by the end of the decade. The companies also noted the project would create 1,000 permanent jobs at the site. Furthermore, it will support 4,000 construction jobs. The implementation of rare earth and mineral projects across the U.S. have become fundamental as companies invest such as Vulcan Elements rare earth element project in Benson, North Carolina. 

The Scope on the Oklahoma Smelter Plant by the U.S. Government

The scope on the Oklahoma smelter plant seems to have the full backing of the U.S. government. U.S. President Donald Trump has sought to bolster domestic production of aluminum. It is on the U.S. list of critical minerals, by imposing a tariff on imports. The levy was doubled to 50% from June last year and pushed up the Midwest aluminum premium. Once complete, various industries are expected to benefit from the project.

These include the U.S. automotive, aerospace, construction, packaging and national defense industries. These remarks were noted by Jesse Gary, CEO of Chicago-based Century. “About 85% of the aluminum needs of American industries are currently met by imports. The new smelter will expand the domestic supply of this critical mineral and grow the American aluminum workforce,” EGA and Century said in their statement. Furthermore, they noted that it would revitalize the U.S. aluminum expertise and know-how.

Project Factsheet

Project Overview

• Project: Inola Smelter of Aluminum.
• Location: Inola, Oklahoma, the United States.
• Project Objective: Primary aluminum smelter.
• Status: Planned / Pre-construction.
• Importance: First new primary aluminum plant in United States in almost 50 years.

Ownership & Structure

• Emirates Global Aluminium (EGA): 60 percent stake.
• Century Aluminum: 40% stake
• Investment Value: $4 billion
• Monetary terms: Undisclosed.

Capacity & Output

• Intended Capacity: 750,000 metric tonne/year.
• Past Design Capacity: 600,000 tonnes/y.
• Impact: To also triples the present U.S. aluminum production.

Timeline

• Construction Commencement: By the year’s end.
• Starting Production: Before the end of the decade.
• Employment Impact
• Permanent Jobs also expected to 1,000
• Construction Jobs: ~4,000

Strategic Importance

• Aluminum is a U.S. critical mineral.
• Project was also in accordance with the U.S. policy of decreasing the dependence on imports.
• Backed by fifty percent tariff on imported aluminum.

Key End-Use Sectors

• Automotive
• Aerospace
• Construction
• Packaging
• National defense

Market Context

• The present percentage of U.S. aluminum met by imports stood at 85%.
• Project also directed at proliferation of domestic supply and labor.
• Projected to enhance the U.S. aluminum skills and industrial capability.