Alcoa Shifts Focus to Aluminium Production with Alumina Cuts in 2025

Alcoa

US aluminium producer Alcoa has announced plans to cut alumina output and ramp up aluminium production in 2025. In its annual report, released on January 22, Alcoa revealed it had met its production targets for 2024, producing 10 million tons of alumina and 2.2 million tons of aluminium. While aluminium production grew by 4.8% from 2023, alumina output fell by 2.9%. This strategic move highlights Alcoa's ongoing adjustments in response to market conditions and operational challenges.

Alumina Production Cuts Continue into 2025

For 2025, Alcoa expects alumina production to range between 9.5 million and 9.7 million tons, marking the second consecutive year of output reductions. The company had previously halted operations at its Kwinana plant in Western Australia, which had a capacity of 2.2 million tons per year. This decision followed a combination of high operating costs, the plant's age, and soaring bauxite prices. As a result, Alcoa plans to continue sourcing alumina externally, a strategy it began in 2024 to fulfill customer orders and maintain supply chain efficiency.

Aluminium Production Growth Driven by Plant Resumptions

On the aluminium front, Alcoa saw significant growth, increasing its output by 4.8% in 2024. This increase was driven in part by the resumption of operations at its Warrick and Alumar joint venture smelters in the US and Brazil, which had been inactive for years. In 2025, Alcoa forecasts aluminium production to rise further to between 2.6 million and 2.8 million tons, as these plants continue to scale up operations. The company’s aluminium output is expected to remain steady through 2024, with quarterly production gradually increasing.

Alcoa Looks Ahead with Positive Aluminium Price Outlook

Alcoa's financial outlook for 2025 is further supported by the positive trend in aluminium prices. The London Metal Exchange's aluminium cash price rose from $2,110 per ton to $2,611 per ton over the past year, reflecting growing demand. Additionally, the removal of the tax rebate on commodities, including aluminium, by China in December 2024 is expected to further elevate prices, benefiting Alcoa's bottom line.

Alcoa Maintains 2024 Guidance as Third-Quarter Production and Revenue Climb

Alcoa

Alcoa Corporation, a leading U.S.-based integrated aluminum producer, upheld its 2024 production guidance for alumina and aluminum despite achieving increased quarterly production and revenue in Q3. The company continues to project aluminum production at 2.2-2.3 million metric tonnes (t) and alumina output at 9.8-10 million t, unchanged from prior estimates.

Third-Quarter Highlights

Aluminum production grew 5% year-over-year, reaching 559,000 t in Q3 2024 compared to 532,000 t in the same period last year. Aluminum shipments also rose slightly to 638,000 t from 630,000 t. Meanwhile, bauxite production declined to 9.4 million dry metric tonnes (dmt) from 10.7 million dmt a year ago. Alumina output decreased to 2.435 million t, down from 2.805 million t, with shipments falling to 2.052 million t.

Revenue and Market Dynamics

Alcoa’s Q3 revenue rose nearly 12% year-over-year to $2.9 billion, driven by higher alumina prices, which averaged $485/t compared to $354/t in Q3 2023. Aluminum prices also increased to $2,877/t, up from $2,647/t a year earlier. Third-party aluminum sales rose approximately 10% to $1.8 billion. Improved alumina pricing and lower raw material costs helped narrow segment losses to $11 million from $15 million in the same period last year.

The company posted $90 million in profits, a significant improvement from the $168 million loss reported in Q3 2023.

Strategic Developments

Alcoa raised its annual shipment forecast by 200,000 t to 12.9-13.1 million t, reflecting increased trading volumes. However, a wider spread between production and shipments emerged due to external sourcing of alumina amid the ongoing curtailment of the Kwinana refinery in Australia.

Alcoa is advancing a strategic partnership with IGNIS, a Spanish renewable energy investment firm. The agreement includes selling 25% of Alcoa's operations in Spain and a potential €175 million ($189 million) investment by Alcoa if required. The deal is contingent on government and employee support.

On 15 October, Alcoa signed a long-term supply agreement with Aluminum Bahrain (Alba) to deliver 1.5 million t of smelter-grade alumina over 10 years beginning in 2026, bolstering its position as a global alumina supplier.

Outlook

With strong alumina prices and strategic partnerships, Alcoa expects its alumina segment performance to improve by $30 million, driven by increased shipments and reduced production costs. As global aluminum demand remains steady, Alcoa’s ability to adapt through cost efficiency and partnerships positions it favorably for future growth.

Alcoa San Ciprian smelter restart resumes after power outage

Alcoa

Alcoa San Ciprian smelter restart resumes after a damaging power outage. Alcoa San Ciprian smelter restart follows government assurances on grid resilience. Alcoa San Ciprian smelter restart advances under an $81mn joint venture with Ignis.

Timeline, power reliability, and investment

Alcoa paused the restart to assess damage and power reliability. Authorities outlined measures to strengthen Spain’s grid resilience. The joint venture now restarts the plant with staged milestones. Completion is targeted by mid-2026, assuming stable energy supply.

Alcoa expects a wider 2025 loss from San Ciprian. Management guides a $90–110mn net loss this year. Delay costs stem from equipment damage and prolonged idling. Government backing aims to restore competitive baseload power.

Market implications and risk factors

The restart matters for European primary aluminum supply. Spain and Galicia seek industrial jobs and strategic metals output. Reliable power pricing remains the decisive competitiveness factor. As a result, long-term energy contracts are pivotal.

Alcoa explores long-term power contracts and onsite energy solutions. Grid upgrades and renewable sourcing could reduce volatility over time. However, execution risks include supply chain lead times and permits. Therefore, ramp discipline and cell integrity will be critical.

The Metalnomist Commentary

San Ciprian’s path hinges on bankable power and disciplined ramp. Watch transformer availability, anode supply, and cell relining schedules. Price-sensitive casthouse products could improve margins during restart.

Alcoa aluminum output rises as alumina and bauxite slip

Alcoa Aluminum

Alcoa aluminum output increased in the second quarter despite upstream weakness and tariff pressure. The Brazil Alumar ramp-up offset delays at Spain’s San Ciprián smelter and stabilized smelting utilization. Management maintained 2025 aluminum production guidance at 2.3–2.5 million tonnes, signaling operational confidence. However, shipments lagged as the restart pause and trade frictions disrupted flows across key corridors. Alcoa aluminum output momentum nevertheless underpins a cautious but improving outlook for margins.

Tariffs reshape shipments and guidance

Tariffs continue to weigh on realized economics and delivery patterns across North America. Alcoa cut full-year shipment guidance to 2.5–2.6 million tonnes to reflect power and logistics headwinds. It also expects about $90 million of tariff costs in the third quarter, pressuring profitability. Canadian metal was redirected away from the United States to mitigate incremental import charges. Peers face similar headwinds, confirming broader cost inflation across global aluminum supply chains. As a result, Alcoa aluminum output strength must translate into disciplined commercial execution.

Upstream constraints and sourcing strategy

Bauxite and alumina production declined as the Kwinana refinery closure reduced available refining capacity. Even so, Alcoa kept 2025 alumina production guidance at 9.5–9.7 million tonnes, highlighting operational flexibility. To honor contracts, the firm will ship more alumina than it produces through third-party sourcing. This strategy preserves customer commitments while the San Ciprián restart progresses toward mid-2026 completion. Meanwhile, the Brazil Alumar ramp provides volume resilience across the smelting portfolio.

The Metalnomist Commentary

Alcoa is leaning on Alumar’s ramp and agile sourcing to bridge upstream gaps and tariff friction. Watch the cadence of San Ciprián’s restart, tariff pass-through in contracts, and regional premia trends. If physical tightness persists, disciplined sales mix could translate output gains into durable cash flow.

Alcoa Declares Force Majeure on Brazil Bauxite Shipments from Juruti Port

Alcoa Brazil Bauxite Shipments

U.S.-based primary aluminum producer Alcoa has declared force majeure on bauxite shipments from its operations in Juruti, Brazil. This announcement follows the closure of the Santarém harbor waterway due to a stranded ship that has obstructed the terminal access channel.

The incident, which is beyond Alcoa's control, has rendered the waterway inoperable. Alcoa clarified that it was not involved in the stranding and has no influence over the timeline for resolving the issue.

Critical Impact on Brazil's Bauxite Exports

Santarém Port is a key hub for Brazil's bauxite exports, accounting for 99.7% of the 4.5 million metric tonnes (t) of bauxite exported from the country so far this year, based on customs data. Alcoa's declaration of force majeure underscores the disruption’s significant impact on global bauxite supply chains.

No Timeline for Resolution

While Alcoa has not provided an estimated timeline for the resumption of shipments, the situation highlights the vulnerability of global mineral supply chains to logistical disruptions. The company continues to monitor the situation closely as authorities work to resolve the blockage.

As a leading producer of primary aluminum, Alcoa’s operational interruptions could have broader implications for industries reliant on bauxite, a key raw material for aluminum production.

Alcoa Finalizes Venture to Support Smelter Restart in Spain

Alcoa Spain

Alcoa Invests in Joint Venture to Reopen San Ciprián Smelter

Alcoa has formed a joint venture with Spain’s Ignis Equity Holdings to revive its San Ciprián aluminum smelter. The Pittsburgh-based aluminum giant will invest $81 million for a 75% stake, while Ignis contributes $27 million for the remaining share. The move comes after prolonged shutdowns driven by extreme energy costs that began disrupting production in 2022.

Restart Hinges on Government Support and Renewable Energy

Alcoa may inject up to $108 million more to support operational needs. Any further funding will require mutual approval between Alcoa and Ignis. The venture also ties into a January memorandum with Spain’s national and regional governments to accelerate project approvals and labor coordination. Restarting the facility requires $10 million, with both partners seeking streamlined permits for renewable energy solutions to offset power costs.

Spanish Asset Sales Failed, But Local Cooperation Is Key

Efforts to sell the San Ciprián smelter and associated Spanish operations — including a foundry and alumina refinery — previously failed. However, the new partnership reflects a shift toward local cooperation to ensure long-term operational sustainability.

The Metalnomist Commentary

Alcoa’s renewed investment in Spain signals a strategic shift: instead of exiting, it’s doubling down with localized energy partnerships. As Europe grapples with power price volatility, ventures like this offer a template for industrial resilience through public-private coordination and renewable integration. The aluminum market will be watching closely.

Alcoa Completes $2.8 Billion Buyout of Alumina Limited

In a significant industry move, US aluminum producer Alcoa has finalized the acquisition of its Australian joint venture partner, Alumina Limited, in an all-stock deal valued at approximately $2.8 billion. This marks a notable increase from the initially projected $2.2 billion valuation when the agreement was first announced in February.

With this acquisition, Alcoa now holds full ownership of Alcoa World Alumina and Chemicals (AWAC). AWAC operates and has interests in bauxite and alumina facilities across Australia, Brazil, Spain, Saudi Arabia, and Guinea, representing roughly 25% of the global alumina market. This consolidation positions Alcoa as a dominant player in the industry.

"The acquisition of Alumina Limited strengthens Alcoa's position as one of the world's largest bauxite and alumina producers and is expected to result in long-term value creation from greater financial and operational flexibility," said Alcoa's chief executive, William F. Oplinger.

The completion of this acquisition underscores Alcoa’s strategy to enhance its market standing and operational capabilities, potentially yielding significant benefits from integrated operations and streamlined decision-making processes.

Alcoa Bolsters San Ciprian Smelter Operations Through Strategic MoU with Spanish Authorities

Alcoa

New Partnership Aims to Stabilize Alcoa’s Operations and Ensure Long-Term Sustainability

Alcoa, the prominent US aluminium producer, has formally partnered with both the Spanish national government and the Galician regional authorities through a Memorandum of Understanding (MoU) to enhance the operations of the San Ciprian smelter in Spain. This strategic alliance is aimed at securing the smelter’s future operations, marking a significant development in Alcoa’s commitment to maintaining its footprint in Europe.

Previously, Alcoa attempted to divest the San Ciprian facility in 2021 but faced challenges due to deteriorating economic conditions. However, an initial agreement with labor representatives early in 2023 set the stage for a potential full restart by the following year. Despite these efforts, continued economic hurdles led Alcoa to reevaluate its options, culminating in today's MoU announcement.

Alvaro Dorado Baselga, Alcoa’s global vice-president for energy, highlighted the MoU's focus on collaboration and sustainable growth. The agreement encompasses various initiatives, including dialogue with labor unions, streamlining renewable energy projects, enhancing CO2 compensation, and approving crucial investments in waste management infrastructure. Baselga expressed optimism about using the current momentum to finalize negotiations with key stakeholders and secure a prosperous future for the San Ciprian plant.

Alcoa San Ciprian Power Shutdown Threatens Smelter Restart Plans

Alcoa San Ciprian Al plant

Grid Failure Hits Aluminium Operations in Spain, Impact Still Unclear

The Alcoa San Ciprian power shutdown has disrupted aluminium production at one of Spain’s key industrial sites. On 28 April, a full-scale electricity outage impacted Alcoa’s refinery and smelter operations in San Ciprian. The company is currently assessing the operational and financial impact, as the root cause of the national grid failure remains unknown.

Smelter Damage Risk Increases with Extended Power Loss

Power outages at aluminium smelters can cause irreversible damage if molten metal solidifies in potlines. Studies suggest damage becomes catastrophic after 3–5 hours of outage. The Spanish grid disruption reportedly exceeded that timeframe, placing significant pressure on San Ciprian’s backup power systems. The integrity of these systems will determine the plant’s future operability.

Timing Jeopardizes Recent Restart Investment

The incident follows Alcoa’s $81 million joint venture with Ignis Equity Holdings, aimed at restarting the idled smelter in 2024. The smelter had previously shut down due to high production costs, but restart efforts were already underway. The Alcoa San Ciprian power shutdown may now delay or derail those plans, raising uncertainty over Spain’s industrial power resilience and aluminium supply.

The Metalnomist Commentary

The Alcoa San Ciprian power shutdown underscores the vulnerability of energy-intensive industries to grid instability. As aluminium demand grows, securing stable and redundant energy infrastructure will be critical for operational continuity.

Alcoa's 2Q Preliminary Earnings Surge Despite Decline in Alumina Production

In an impressive performance, U.S. aluminum giant Alcoa reported a notable rise in its preliminary second-quarter earnings, even as alumina production faced a downturn. The company's earnings before interest, tax, depreciation, and amortization (EBITDA) were estimated to be between $180 million and $190 million for the second quarter, marking a substantial increase of 35% month-over-month and 33% year-over-year. This remarkable growth can be primarily attributed to elevated aluminum prices.

However, Alcoa's alumina production saw a decline, with the output reaching 2.4 million tons in the second quarter. This represents a 4% decrease from the previous quarter's production of 2.5 million tons and a 6.2% drop from the 2.6 million tons produced during the same period in 2023. The reduction in output has been linked to the curtailment of operations at the Kwinana refinery in Western Australia and the San Ciprian plant in Spain.

In a strategic move announced in February, Alcoa revealed its plan to acquire its Australian joint venture partner, Alumina Limited, in an all-stock transaction valued at $2.2 billion. The acquisition is anticipated to be finalized around August 1st, marking a significant expansion in Alcoa's operational capabilities and market reach.

This development underscores Alcoa's resilience and strategic agility in navigating market fluctuations and operational challenges, positioning the company for sustained growth in the competitive aluminum industry.

Alba and Alcoa Renew Alumina Supply Agreement Amid Tightening Global Market

Aluminium Bahrain(Alba)

Aluminium Bahrain (Alba), a leading aluminium producer in the Middle East, has renewed its alumina supply agreement with the U.S.-based integrated aluminium company Alcoa. This new, extended agreement will secure up to 16.5 million tonnes of smelter-grade alumina over the next decade, beginning in 2026. This strategic partnership not only strengthens Alba’s operational resilience by ensuring a steady alumina supply but also bolsters its competitive stance in the global aluminium market.

In a recent statement, Alba CEO Ali al-Baqali remarked, “This agreement not only guarantees a steady supply of alumina for our operations but also reinforces our position as a key player in the global aluminium market.”

The renewal of Alba’s alumina supply agreement comes at a critical time as the alumina market faces tightening supply. This is largely due to recent output disruptions in China, a significant alumina-producing nation, which has put pressure on the supply chain. Additionally, Alcoa recently announced plans to fully suspend production at its 2.2 million tonne-per-year Kwinana refinery in Australia by the end of this year, further impacting global supply.

Adding to the challenges, Guinea recently paused bauxite shipments from the subsidiary of UAE-based Emirates Global Aluminium. Although initially this is not expected to directly impact production at Al Taweelah, Emirates Global’s alumina refinery in the UAE, such disruptions in Guinea, a major bauxite source, signal potential long-term effects on the alumina and aluminium industries worldwide.

Rio Tinto to Invest $165 Million in Grande-Baie Anode Furnaces Overhaul

Rio Tinto, the UK-Australian mining giant, is set to invest $165 million to refurbish two carbon-anode baking furnaces at its Grande-Baie aluminum smelter in Quebec, Canada. This upgrade is part of the company's broader strategy, which includes advancing inert anode technology at its Arvida plant.

The refurbishment will involve rebuilding the Péchiney furnaces' concrete shell and refractory lining in two phases across 2025 and 2026. These furnaces are critical, supplying about 60% of the 280,000 anodes annually needed for the 816 pots at Rio Tinto's Grande-Baie and Laterrière smelters. During the phased shutdowns for the rebuild, Rio Tinto plans to maintain production by utilizing a third furnace with different technology, stockpiled anodes, and market purchases. This strategy ensures no impact on aluminum production.

The overhaul will reduce Rio Tinto's demand for calcined petroleum coke (CPC) over the next two years, but the long-term CPC demand is expected to stabilize, as the refurbished equipment will serve the smelters for "decades to come," according to the company. The upgraded furnaces are projected to have a lifespan of about 25 years.

Simultaneously, Rio Tinto is making significant strides in commercializing inert anode technology. Last month, the company announced a substantial investment to advance this technology, which could eventually render carbon anodes and the traditional Hall-Héroult smelting process obsolete. Rio Tinto has obtained the first technology license to use the Elysis process at its Arvida smelter. Elysis, a joint venture between Rio Tinto and Alcoa, aims to commercialize inert anode technology. Together with the Quebec government, Rio Tinto will invest a total of $285 million to design, engineer, and construct a 10-pot, 2,500 t/yr plant as a pilot project to demonstrate the Elysis technology. This project is considered a "critical step in Rio Tinto's learning journey towards full-scale industrialization," with first production targeted for 2027. Alcoa has an option to purchase a portion of the aluminum produced during the first four years. Additionally, Elysis plans to launch industrial prototype cells using inert anodes at Rio Tinto's Alma smelter later this year.

Elysis is at the forefront of efforts to replace CO2-emitting carbon anodes, which are made from anode-grade calcined petroleum coke, with inert anodes that release oxygen. Other companies, such as Germany-based Trimet, are also developing similar technologies.

Despite these advancements, carbon anodes are expected to remain in use for the foreseeable future. Rio Tinto's investment in the Grande-Baie baking furnaces underscores this reality. One market participant described it as a "public setback" for inert anode technology, noting that it signals Rio Tinto's intent to continue using carbon technology for the next 10-20 years. Another participant suggested that inert anode technology might not significantly impact carbon anode demand until after 2030, possibly even 2035.

Challenging Market Conditions Limit Low-Carbon Aluminium Premium

Aluminium

Demand for low-carbon aluminium in Europe has grown steadily in recent years, with consumers willing to pay a premium for sustainable products like Hydro's Reduxa, Alcoa's EcoLum, and Rusal's Allow, which have a carbon footprint of 4t or less per tonne of aluminium. Despite this, tough market conditions have capped how much more buyers are willing to pay over regional premiums.

During the summer, some low-carbon aluminium was offered with no premium over standard aluminium, as overall demand in the aluminium sector remained weak. The upcharge for low-carbon aluminium continues to hover at lower levels, a result of sluggish demand across various industries, including automotive, construction, and packaging. This is compounded by the fact that the European premium for standard aluminium remains relatively high, driven by tight global supply and a shift away from Russian metal.

While the current market dynamics are challenging, the long-term outlook for low-carbon aluminium is optimistic. In recent years, manufacturers have increasingly prioritized sustainability, with life-cycle assessments and specific carbon footprint goals driving demand in industries like automotive, packaging, and construction. The introduction of market regulations, such as the EU’s carbon border adjustment mechanism, is expected to further accelerate demand for low-carbon aluminium, pushing companies to emphasize sustainability even more.

However, a liquid, widely available spot market for low-carbon aluminium is still far off. Most of the material is supplied to select customers through contracts, though some is sold on the broader market during slower periods, such as the summer months.

To secure its place in the broader market, low-carbon aluminium will need to solidify its definition and standardize how producers calculate carbon footprints, taking into account the raw materials they use. Investments in new technologies, such as inert anodes and carbon capture projects, are expected to lower emissions further, ensuring that low-carbon aluminium continues to evolve and meet future sustainability standards.

Alumina Market Faces Supply Challenges: What’s Next for 2025?

Aluminium

As alumina prices soared to record highs in late 2024, global markets are bracing for more supply disruptions in the coming year. Alumina, the key raw material for aluminium production, faced significant supply shortages due to a combination of environmental regulations, production stoppages, and logistical challenges across major supplying countries. While new projects are expected to alleviate the pressure in 2025, the alumina market remains vulnerable to supply shocks that could impact aluminium prices in the near future.

Supply Disruptions Drive Alumina Prices to Record Levels

Alumina prices surged by over 70% in 2024, with prices peaking above $780 per ton in both China and Australia by November. This price spike was driven by multiple disruptions across the globe, including lower exports from Australia, logistical bottlenecks in Brazil, and production suspensions in Guinea.

In Australia, the tightening of environmental regulations and a fire-related disruption in Queensland affected alumina production, leading to force majeure declarations from major suppliers like Rio Tinto. Meanwhile, in Brazil, Alcoa also declared force majeure in November due to the closure of the Santarem harbor, which blocked access to one of the country’s main bauxite export terminals.

In Guinea, seasonal rains and infrastructure issues led to a nearly 40% reduction in bauxite shipments. Despite these challenges, Emirates Global Aluminium (EGA) indicated that the suspension would not immediately impact its operations, although concerns about long-term supply remained.

Demand and Supply Outlook for 2025

The global aluminium production continued to rise in 2024, particularly in China, where new production capacities came online. Despite this, China’s alumina production has failed to keep pace with aluminium output, leading to a sharp rise in alumina imports. By the end of September, China had imported over 123 million tons of alumina, a 33% increase compared to the same period in 2023.

However, relief may be on the horizon. In 2025, China is set to add more than 13 million tons of new alumina capacity, while other key players, including India’s Vedanta Resources and Guinea’s EGA, are planning significant new alumina refining projects that could ease the global supply squeeze by 2026. UBS forecasts a surplus of 960,000 tons of alumina in China next year, a dramatic turnaround from the deficit observed in 2024.

Despite these optimistic forecasts, challenges remain. The tightness in bauxite supply—especially from Guinea, which supplies 72% of China’s alumina imports—could continue to limit alumina production in China. Environmental regulations in China’s key bauxite-producing provinces, coupled with logistical issues in Guinea, mean that alumina markets will likely remain susceptible to disruptions throughout 2025.

Conclusion

While new alumina production capacities are expected to ease supply pressures in the coming years, the market remains highly vulnerable to supply shocks. Stakeholders in the alumina and aluminium industries will need to closely monitor the situation in major producing regions, particularly in Guinea and China, as these could have significant implications for aluminium prices in 2025. With alumina supply still concentrated in a few key regions, the risk of further disruptions remains high, and the industry must prepare for potential volatility.

UAE’s EGA Faces Bauxite Shipment Suspension from Guinea Amid Global Aluminium Market Disruptions

EGA

The global aluminium industry is facing renewed uncertainty as Emirates Global Aluminium (EGA), a UAE-based company, confirmed the suspension of bauxite shipments from its Guinea Alumina subsidiary. The halt was enacted by Guinean customs officials, who have yet to provide an explanation or a timeline for the resumption of exports. EGA has stated that, for now, the stoppage will not impact operations at its Al Taweelah alumina refinery in the UAE, a key link in the supply chain for aluminium production.

Aluminium prices on the London Metal Exchange (LME) responded swiftly to the news, surging 3.73% to reach $2,653.50 per tonne, marking a significant movement in the day’s trading session. This price increase adds to a year of volatility in the alumina market, driven by repeated supply interruptions. "We are seeking clarity from customs on the reason for this action and are working to resolve this as quickly as possible," said an EGA representative.

Rising Aluminium Prices and Global Supply Chain Concerns

The bauxite shipment suspension from Guinea follows a series of disruptions in alumina production worldwide, which have collectively placed pressure on the aluminium market. In Australia, US aluminium producer Alcoa has announced plans to fully halt alumina production at its Kwinana refinery, which has an annual capacity of 2.2 million tonnes. Meanwhile, China has seen its own limitations on alumina production this year, further tightening global supply.

These restrictions come as the aluminium industry navigates increasing demand for lightweight metals in various sectors, from construction to electronics, adding to price pressures. Market analysts suggest that such supply chain interruptions could lead to sustained high prices for aluminium if production does not stabilize soon.

Hydro and Rio Tinto Collaborate on Carbon Capture for Al Smelters

Hydro

Hydro and Rio Tinto have forged a partnership to develop and assess carbon capture technologies for aluminum smelters. This alliance aims to accelerate decarbonization within the aluminum industry.

Joint Research and Development Initiatives

The agreement entails shared research and development costs, laboratory test results, and on-site pilot program data. The goal is to create commercially viable carbon capture technologies. The companies will invest roughly $45mn over five years, conducting work at Hydro's Norwegian facilities and Rio Tinto's European assets. Both companies will continue independent decarbonization efforts. A key focus will be anode consumption, representing 75pc of a smelter's direct carbon emissions. Hydro's HalZero smelting process and Rio Tinto's Elysis joint venture with Alcoa are central to this research.

Accelerating Technology Development

"The current technology readiness level is low and requires significant development efforts to mature from laboratory to commercial scale," the companies stated. The collaboration aims to expedite this development to reduce greenhouse gas emissions from smelters.

Ma’aden to Acquire Sabic’s Stake in Aluminium Bahrain

Ma’aden

Strategic Growth in the Aluminium Sector

Saudi Arabian mining giant Ma’aden has agreed to purchase the 20.62% stake in Aluminium Bahrain (Alba) held by Saudi chemical manufacturer Sabic. This acquisition strengthens Ma'aden's regional and international presence in the aluminium industry, a key part of its aggressive growth strategy.

Expanding Ownership and Regional Integration

Ma'aden is not new to acquisitions. Earlier this week, the company announced it would buy Alcoa's 25.1% stake in the Ma’aden joint venture, giving it full control over Ma’aden Bauxite and Alumina and Ma’aden Aluminium businesses. This move positions Ma'aden to consolidate its aluminium business under one umbrella.

In a related development, Ma'aden and Alba signed a non-binding agreement to explore a potential combination of the two companies. This merger could create a “vertically integrated global champion,” according to Alba.

Ma'aden CEO Bob Wilt emphasized that the acquisition of shares in Alba supports Ma’aden’s long-term goals. “As we continue in our growth journey, the acquisition of shares in a highly experienced, well-developed regional and global aluminium player firmly supports our ambitions,” Wilt said.