Emirates Global Aluminium (EGA) is collaborating with Century Aluminum (CENX.US) to construct the United States' first new primary aluminum production facility since the 1980s. In a joint statement released on Monday, the companies announced the plant will be located in Oklahoma and is projected to have an annual production capacity of 750,000 metric tons of aluminum. EGA, one of the world's largest primary aluminum producers, will hold a 60% stake in the joint venture, with Century Aluminum owning the remaining share. Construction is anticipated to commence by the end of this year, with operations scheduled to begin before 2030. Reports last month indicated that EGA was seeking an equity partner for its planned US facility. Following the announcement, shares of Century Aluminum, which is controlled by Glencore, fell as much as 8.4% in New York trading. The new plant will contribute to reducing US reliance on imported aluminum; according to the US Geological Survey, foreign supplies accounted for approximately half of the country's consumption in 2024. EGA's partnership comes at a time of soaring US aluminum prices, a situation triggered by tariffs on imported metals imposed during the Trump administration, which disrupted markets and increased costs for domestic consumers. The plant's cost is estimated to exceed $5 billion, according to Bank of Montreal analyst Katja Yantchik. "We view the spend as feasible in the current pricing environment," Yantchik wrote in a report, "However, given the cyclical nature of the aluminum business and ongoing tariff uncertainty, we would not be surprised if the company considered other financing options, including equity financing."
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