Outokumpu US chromium metal investment targets high-value aerospace and defence demand

Outokumpu US chromium metal

Outokumpu US chromium metal investment marks a strategic move into premium specialty metals for aerospace, defence and energy markets. The New Hampshire pilot plant will produce enriched ferro-chrome at 65pc Cr and chromium metal at 90pc Cr purity. As a result, Outokumpu US chromium metal investment positions the group closer to high-spec alloy supply chains in North America.

Low-carbon chromium technology and staged capacity build-out

Outokumpu is using proprietary low-carbon technology at the new US pilot plant. The facility is scheduled to start operations in the first half of 2027, following earlier R&D work at its Boston laboratory opened in 2024. Therefore, Outokumpu US chromium metal investment clearly links regional technology development with commercial-scale metals production.

The $45mn pilot project will validate process performance, carbon intensity and product quality for enriched ferro-chrome and chromium metal. After the pilot phase, Outokumpu plans an industrial-scale plant with 10,000 t/yr capacity, targeted for 2029-30 start-up. This staged approach reduces scale-up risk while building customer confidence in long-term chromium supply.

Premium chromium metal for aerospace and critical sectors

Outokumpu aims to supply premium-priced chromium metal into high-value aerospace, defence and energy applications. Chromium metal already trades at a wide pricing spread by origin and specification, with European material priced well above Chinese and Russian supply. European-origin chromium for aerospace and defence often sits at or above the top of current market assessments, reinforcing the value of qualifying high-purity product.

By anchoring production in the US, Outokumpu can offer a Western, lower-carbon source of chromium metal and enriched ferro-chrome. This strengthens regional resilience for aero-engine alloys, superalloys and advanced stainless grades. In turn, the Outokumpu US chromium metal investment moves the company’s ferro-chrome business further into the specialty metals space, as highlighted by chief technology officer Stefan Erdmann.

The Metalnomist Commentary

Outokumpu is reading the market correctly by aligning chromium metal capacity with aerospace and defence re-shoring trends. If the new technology delivers both lower carbon and tight specifications, the company could secure a durable price premium despite global oversupply risks. The key watchpoints now are qualification timelines with major alloy producers and how quickly industrial-scale capacity locks in long-term offtake.