Novelis Oswego fire highlights risks to US aluminum rolling capacity

Novelis

The Novelis Oswego fire has disrupted a key aluminum sheet hub in the US, testing the company’s operational resilience. The Novelis Oswego fire directly damaged the hot-rolling mill and forced a two-week shutdown across the site. As a result, downstream customers now face a period of constrained hot mill output while Novelis works to stabilise supply.

Novelis Oswego fire and phased restart strategy

Novelis has restarted its cold-rolling mill and finishing lines at the Oswego facility, restoring part of its aluminum sheet output. However, the Novelis Oswego fire left the hot-rolling mill with weakened structural integrity, preventing safe access and delaying repairs. The company now targets the first quarter of 2026 for a hot mill restart, which implies a prolonged bottleneck on primary rolling capacity.

Meanwhile, Novelis expects to bring its ingot casthouse and scrap processing units back online once full power is restored. Water damage and safety checks have slowed the return of these upstream units, even though they were not directly hit by the blaze. This staged restart will shape how quickly Novelis can normalise melt, cast and recycle flows at Oswego.

Supply-chain impact and customer mitigation efforts

Novelis is coordinating with its other plants to source material and minimise customer interruptions while Oswego ramps back up. This means the Novelis Oswego fire will likely have uneven impacts across end markets, depending on grade flexibility and qualification rules. Automotive, packaging and industrial customers may rely more heavily on alternate Novelis sites or competing mills for certain specifications.

However, the company’s ability to reroute slab and cold-rolled capacity across its network will cushion some of the disruption. The long lead time to restore the hot-rolling mill also gives customers a clearer planning horizon for 2025 and early 2026. At the same time, the incident underscores how concentrated rolling assets can pose significant operational risk in the North American aluminum supply chain.

The Metalnomist Commentary

The Novelis Oswego fire is a reminder that physical asset risk can move markets as quickly as macro demand shifts. For buyers, qualifying alternate mills and diversifying sourcing for critical sheet specifications will be essential until Oswego’s hot mill returns in 2026. For Novelis, the priority will be balancing short-term customer cover with longer-term plans to harden its rolling and recycling infrastructure against future disruptions.

Novelis Oswego Mill Restart Delay Tightens US Flat-Rolled Aluminum Supply

Aluminum Ingot

Novelis Oswego mill restart remains one of the most important issues in the US aluminum market. The company now plans to restart the hot-rolling mill by the end of the second quarter. A second major fire pushed the restart well beyond the original December 2025 target. As a result, Novelis Oswego mill restart delays are tightening US flat-rolled aluminum supply.

The outage began in September last year and has already had a major volume impact. Novelis said the shutdown will remove 150,000-200,000t of flat-rolled product shipments before the mill returns. That loss is large enough to affect multiple downstream markets. Therefore, Novelis Oswego mill restart timing matters well beyond one facility.

The disruption has already hit quarterly performance. Novelis lost 72,000t in North American sales volumes during October-December because of the fires. Global shipments fell 11pc to 809,000t in the quarter. Meanwhile, the company posted a $160mn loss after previously reporting a profit.

US Flat-Rolled Aluminum Supply Is Relying on Workarounds

US flat-rolled aluminum supply is now relying on a patchwork of internal transfers and outside sourcing. Novelis nearly doubled intersegment sales volumes to 95,000t in the quarter. The company has been moving hot band from other sites to feed Oswego’s cold-rolling and finishing lines. As a result, the business is preserving some downstream activity despite the damaged hot mill.

The company has also been buying hot band from domestic competitors. That effort is helping support US automakers, especially Ford, which is the main customer for Oswego’s automotive aluminum sheet. However, that support has constrained capacity in other end markets. Therefore, the Novelis Oswego mill restart delay is now affecting the broader industry mix.

The financial cost is also severe. Novelis expects the fires to hit free cash flow by $1.3bn-1.6bn before insurance adjustments. That includes repairs, downtime, and customer support costs. Meanwhile, parent company Hindalco already provided a $750mn equity infusion to ease the pressure.

Bay Minette Aluminum Plant Becomes More Important to the Recovery Story

Bay Minette aluminum plant is now becoming more important in Novelis’ recovery plan. The company expects to start its cold-rolling mill there in March. It still plans to commission the full 600,000t/yr facility in the second half of 2026. As a result, Bay Minette may help offset some of the market strain created by Oswego.

The product mix at Bay Minette also matters. Two-thirds of output will go to beverage-can sheet, while most of the rest will serve automotive flat-rolled products. That means the plant will not replace Oswego directly in every segment. However, it will still add valuable rolling capacity to a tight US market.

This leaves the market in a delicate position. Higher regional aluminum prices helped support Novelis revenues, which still rose 2.6pc to $4.2bn in the quarter. But volume losses and repair costs outweighed that benefit. Consequently, Novelis Oswego mill restart remains the key issue for both company earnings and domestic aluminum sheet availability.

The Metalnomist Commentary

This delay matters because Oswego sits in one of the most sensitive parts of the US aluminum chain. Automotive sheet supply was already tight, and the market has been forced into temporary workarounds. Until Oswego returns and Bay Minette ramps smoothly, flat-rolled aluminum availability will likely stay under pressure.

Novelis Oswego hot mill restart brings relief to US auto supply chain

Novelis Oswego

Novelis Oswego hot mill restart is set to ease pressure on US automotive aluminum supply. The accelerated Novelis Oswego hot mill restart from early 2026 to December will help stabilize automotive-body sheet deliveries. As a result, automakers facing tight aluminum sheet supply, including Ford and Stellantis, gain a clearer path to production recovery.

Fire damage accelerates focus on Novelis Oswego hot mill restart

The September fire at Oswego’s hot-rolling mill disrupted one of the largest US sources of automotive-body sheet. Novelis responded quickly, advancing the Novelis Oswego hot mill restart to December after initially guiding for early 2026. All motors have been removed for inspection, while teams assess damage to major electrical components and control systems.

Meanwhile, Novelis Procurement teams are working “with extreme urgency” to source the 2,455 unique parts affected by the fire. Around 1,900 parts are already on site, underscoring the scale of the repair effort and the importance of the Novelis Oswego hot mill restart. The focus now is on closing the remaining gap and re-commissioning the line safely.

Automotive aluminum customers brace for tight sheet supply into 2026

US automakers have felt the impact of Oswego’s outage across their aluminum supply chains. Ford plans to increase full-size pickup output in 2026 to recover lost volumes once supply normalizes. Stellantis was forced to idle its Warren, Michigan SUV plant because of an unspecified parts shortage, likely tied to constrained aluminum-body sheet.

However, partial operations at Oswego have already resumed, providing some near-term relief. Power has been restored to ingot casthouses and scrap processing, while cold-rolling and finishing lines are back in operation. Until the Novelis Oswego hot mill restart is fully executed, though, the market will continue to depend on inventories, alternate mills and imports to bridge the hot-band gap.

The Metalnomist Commentary

The accelerated Novelis Oswego hot mill restart highlights how critical single sites can be in automotive-body sheet supply. For OEMs, the episode reinforces the need to diversify hot-band sources and build more redundancy into aluminum sourcing strategies. For Novelis and its competitors, it underscores that reliability and recovery speed are now as strategically important as capacity itself.

Novelis Opens Aluminium Recycling Facility in South Korea to Boost Low-Carbon Supply

Novelis

Ulsan Plant Increases Novelis’ Regional Recycling Capacity by 100,000 t/yr

Novelis has opened a new aluminium recycling facility in Ulsan, South Korea, increasing its regional capacity by 100,000 tonnes per year. The facility, fully funded by Novelis with a $65 million investment, is a joint venture with Japan’s Kobe Steel. This expansion underscores Novelis commitment to low-carbon aluminium and a circular economy across Asia’s industrial sectors.

The new Ulsan aluminium recycling facility complements Novelis' existing Yeongju plant, bringing total Korean capacity to 470,000 t/yr. It will recycle used beverage cans, as well as automotive and industrial scrap, producing sustainable aluminium sheet ingot.

As a result, the project is expected to reduce carbon emissions by approximately 470,000 t/yr, aligning with global decarbonization goals.

Sustainable Aluminium Demand Rising in Asia

Novelis Asia president Sachin Satpute emphasized that the Ulsan aluminium recycling centre is a response to growing demand for sustainable materials. Key sectors such as beverage packaging, automotive, and specialty products increasingly require low-carbon aluminium supply chains. Meanwhile, regional policy and ESG pressures are accelerating investment in closed-loop recycling infrastructure.

The aluminium recycling facility in South Korea highlights Novelis’ strategic intent to lead in sustainable aluminium production. With Asia as a major consumption base, this move positions Novelis competitively in both environmental and industrial performance.

The Metalnomist Commentary

Novelis’ investment in Ulsan reflects the industry's pivot toward regionalized, sustainable aluminium production. With policy and market aligning on carbon goals, such facilities are not just environmental assets—they're strategic imperatives.

Novelis to Close Two US Aluminum Facilities Amid Strategic Portfolio Consolidation

Novelis

Novelis Shutters Richmond and Fairmont Plants, Affecting Over 250 Jobs

US-based aluminum rolling giant Novelis will close two of its aluminum facilities in the US as part of a broader portfolio consolidation. The Richmond, Virginia, plant will cease operations by May 30, while the Fairmont, West Virginia, site will shut down by June 30, according to a company spokesperson. The closures will affect more than 250 workers, as indicated in Worker Adjustment and Retraining Notification (WARN) filings.

The Richmond site produces aluminum rolled sheet used primarily in the building and construction sector. Meanwhile, the Fairmont plant supplies sheet and light gauge fin/foil products to both domestic and international markets. Novelis has not yet disclosed where the affected production volumes may be redirected.

Uncertainty Over Tariff Impact and Supply Chain Adjustments

While Novelis did not attribute the closures directly to tariffs, the decision follows recent trade policy changes. The US Commerce Department in March added canned beer and empty aluminum cans to the list of aluminum products now subject to a 25% tariff. This expansion of aluminum trade restrictions has stirred concerns within the US packaging and metals industries.

The company has also declined to clarify whether production will shift to other US sites or move abroad. Analysts are closely monitoring whether this consolidation signals deeper shifts in Novelis' US manufacturing footprint or its evolving supply chain strategy.

Broader Implications for the US Aluminum Sector

These closures come amid heightened scrutiny of global aluminum trade flows, particularly involving Chinese overcapacity and retaliatory trade measures. As US-based firms reevaluate production economics, facility consolidation may become more common.

The aluminum rolling industry is capital-intensive, and margin pressures from construction and packaging demand fluctuations are significant. Novelis’ action could be a harbinger of a reshuffling of North American flat-rolled capacity in response to policy, demand, and cost headwinds.

The Metalnomist Commentary

Novelis’ consolidation reflects deeper tensions in the aluminum sector, balancing plant economics, demand variability, and trade pressures. As the US doubles down on tariffs, manufacturers face growing challenges in justifying capacity retention. The next moves from Novelis—and its rivals—will likely shape the trajectory of rolled aluminum supply in North America.

Novelis Fives Voerde foundry emissions cut by 40% with furnace upgrades in Germany

Novelis

The Novelis Fives Voerde foundry emissions project delivers a major decarbonisation step in downstream aluminium. Novelis upgraded three melting furnaces with Fives at its casting site in Voerde. The Novelis Fives Voerde foundry emissions initiative targets more than a 40% carbon reduction. It also delivers significant energy savings.

The upgrade used Fives’ TwinBed II burner technology. The project deployed North American TwinBed II burners and modernised furnace performance. Meanwhile, European customers want lower-carbon inputs for transport applications. Therefore, efficient furnace upgrades are becoming a fast route to emissions cuts.

TwinBed II burners boost efficiency and cut carbon intensity

The upgrade focused on three aluminium melting furnaces. Fives supplied TwinBed II burners for the retrofit. The company managed the project through its team in Bilbao.

Operational gains support both emissions and cost goals. Novelis expects significant energy savings from the new configuration. However, the full value depends on stable throughput and scrap mix quality. Therefore, the furnace upgrade also supports tighter process control and yield.

Low-carbon billets support automotive and aerospace supply chains

The Voerde foundry produces custom-made aluminium billets. It serves automotive and aerospace manufacturers with tailored billet specifications. As a result, lower-carbon aluminium billets can help buyers meet Scope 3 and product footprint targets.

Novelis’ European leadership framed the project as practical progress. Emilio Braghi said the upgrades reduce footprint and improve efficiency. Meanwhile, industrial buyers increasingly tie contracts to carbon reporting. Therefore, the Novelis Fives Voerde foundry emissions cut could strengthen supplier positioning in premium alloys.

The Metalnomist Commentary

Retrofits often beat greenfield builds because they cut emissions faster. Meanwhile, burner upgrades can unlock savings even before grid decarbonisation completes. Therefore, downstream aluminium plants should prioritize proven furnace efficiency projects.

Novelis and TSR Partner to Boost Recycled Aluminum Supply for Automotive Industry

Novelis

In a move to bolster sustainable production, U.S.-based aluminum recycler Novelis has signed a three-year agreement with European scrap processor TSR Recycling. This strategic partnership secures a stable supply of 75,000 tonnes of end-of-life aluminum scrap annually, specifically aimed at producing low-carbon aluminum sheet for the automotive industry.

Rising Demand for Low-Carbon, Recycled Aluminum

With the aluminum sector prioritizing recycled materials to lower carbon emissions, Novelis aims to increase its recycling volume by 50,000 tonnes this year, adding to the 700,000 tonnes processed in Europe last year. The Novelis-TSR partnership supports growing demand from automotive customers for high recycled-content alloys, essential for reducing the sector’s carbon footprint. This deal further solidifies TSR’s longstanding relationship with Novelis, highlighting the importance of securing post-consumer scrap for sustainable production amid increasing industry demand.

"Availability of end-of-life material is crucial as Novelis collaborates with automotive customers to integrate more pre- and post-consumer scrap," Novelis stated, reflecting the sector’s drive toward sustainability.

Novelis and Thyssenkrupp Forge Aerospace Aluminum Supply Deal

Novelis

Strategic Partnership to Enhance Global Aerospace Supply Chains

Novelis and Thyssenkrupp have entered a multi-year agreement. Novelis will supply aerospace-grade aluminum. This includes plates and sheets. Thyssenkrupp's distribution segment will receive the materials. Novelis will provide flat products. These products come from its Koblenz, Germany, and Zhenjiang, China, facilities. Thyssenkrupp's Supply Chain Solutions' aerospace segment will benefit. Deliveries will go to Thyssenkrupp locations in Europe and Asia. 

Novelis acquired the Koblenz and Zhenjiang plants. This acquisition occurred through the Aleris Rolled Products buyout. The buyout closed in April 2020. The Koblenz plant has a 150,000 metric ton capacity. This capacity is for semi-finished aluminum products. The Zhenjiang facility has a 250,000 metric ton hot mill capacity. It can produce 35,000 metric tons of commercial plate products. Aerospace aluminum grades are crucial. These grades include 2024, 6061, and 7075. They offer high-strength, lightweight properties. They are vital for energy-efficient aircraft production. These materials are used in wings and fuselages.

Expanding Reach in Key Aerospace Markets

The agreement strengthens both companies' positions. Novelis reinforces its role as a key aluminum supplier. Thyssenkrupp enhances its aerospace supply chain. The partnership targets the growing demand for lightweight materials. This demand is within the aerospace industry. The deal leverages Novelis' production capabilities. It utilizes facilities in both Europe and Asia. It ensures consistent supply for Thyssenkrupp. This collaboration supports the development of more fuel-efficient aircraft.

Novelis Targets Carbon Neutrality by 2050, Sets Ambitious 2030 Benchmarks

Novelis

Novelis, a leading US-based aluminum roller and recycler, has laid out its roadmap for achieving carbon neutrality by 2050. The company’s recently released sustainability report outlines key decarbonization goals for 2030, focusing on reducing emissions and increasing the use of recycled aluminum.

Key 2030 Targets

• Recycled Content: Novelis aims to increase the average recycled content in its aluminum products to 75%, up from the current 63%.
• Emission Reduction: The company plans to limit Co2 emissions to less than 3 metric tons (t) per ton of flat-rolled aluminum shipped.
• Beverage Cans Innovation: Novelis is designing a single-alloy beverage can to achieve 90% recycled content in its beverage packaging sheets, up from approximately 80% today.

Progress on Emissions Reductions

Since its fiscal year 2016 baseline, Novelis has achieved a 27% reduction in scope 1, 2, and 3 emissions, cutting emissions from 20 million tons to 14.6 million tons in fiscal year 2024. This progress keeps the company on track to meet its interim goal of a 30% reduction by 2030.

A Leader in Sustainability

As the largest aluminum recycler in the world, Novelis’ efforts to integrate higher recycled content not only contribute to emissions reductions but also align with global sustainability trends. The company’s beverage packaging innovation demonstrates its commitment to reducing environmental impact in a key product category.

By focusing on reducing its carbon footprint and embracing circular practices, Novelis is positioning itself as a leader in the sustainable metals industry while advancing toward its long-term carbon neutrality goal.

Novelis, TSR Forge 3-Year Partnership for Aluminum Scrap Supply in Push for Low-Carbon Future

TSR Recycling

In a pivotal move toward sustainability, US-based aluminum manufacturer and recycler Novelis has announced a three-year agreement with European scrap processing leader TSR Recycling. This strategic partnership will secure a stable supply of approximately 75,000 metric tons of end-of-life, pre-sorted, and processed aluminum scrap annually, supporting Novelis’ mission to deliver low-carbon aluminum sheet for automotive applications.

With Novelis recycling around 700,000 metric tons of aluminum scrap in Europe last year, the company aims to expand this figure by an additional 50,000 metric tons, boosting its green production capacity. TSR Recycling, well-versed in the processing of both ferrous and non-ferrous scrap, has long collaborated with Novelis, and this agreement further solidifies their shared commitment to a sustainable, low-emission future for the metals industry.

A Rising Demand for Recycled Material

The agreement reflects an intensifying demand for recycled aluminum as part of the global shift toward sustainable feedstock in metal production. Aluminum producers, increasingly pressured to lower scope 2 emissions, are prioritizing materials with high recycled content. Novelis has taken a proactive approach, working closely with automotive clients to integrate both pre- and post-consumer scrap into its high-recycled-content aluminum alloys. "Availability of end-of-life material is crucial as Novelis is constantly developing innovative solutions with its automotive customers," the company stated, highlighting the importance of a reliable scrap supply to support greener, circular manufacturing.

This partnership positions Novelis and TSR at the forefront of an industry shift where sustainability isn't just a strategy but a growing imperative driven by regulatory changes, consumer expectations, and an accelerating demand for low-emission products in the automotive sector.

Novelis commissions bag houses at UK plant to double UBC recycling capacity

Novelis

Novelis commissions bag houses at UK plant to unlock its next recycling expansion step. Novelis commissions bag houses at UK plant in Latchford, England, as it prepares to double used beverage can processing. The move strengthens emissions control while the site upgrades core recycling equipment.

Novelis commissioned three new bag houses as part of a wider $90mn investment program. The project also adds a new dross house and technology upgrades across shredding and sorting. Meanwhile, the site improves de-coating and melting to lift throughput and metal recovery.

Novelis commissions bag houses at UK plant ahead of a tighter UK circularity policy cycle. The country will enforce a deposit return scheme for single-use drink containers from October 2027. As a result, UBC collection volumes should become more predictable for domestic recyclers.

What the $90mn Latchford expansion adds to recycling capacity

The Latchford facility already runs at 195,000 t/yr and handles both UBC and automotive-grade scrap. The expansion adds 85,000 t/yr of additional recycling capacity once fully ramped. Therefore, the plant can raise output without relying on primary aluminium growth.

Bag houses matter because they support cleaner, more stable operations at higher load. Better dust capture reduces downtime risk during shredding and melting. However, the real value comes from pairing emissions control with higher-capacity front-end processing.

Why the UK deposit return scheme changes the UBC economics

Deposit systems typically improve can return rates and cut contamination. Cleaner UBC feed reduces sorting loss and improves melt yield. As a result, recyclers can produce tighter spec recycled aluminium for rolling mills.

DRS timing also shapes investment sequencing for Novelis and its peers. The company moved early versus its original December 2026 commissioning target. Meanwhile, early readiness can help secure supply contracts as competition for UBC tightens.

The Metalnomist Commentary

This expansion signals a shift from “capacity announcements” to operational readiness. However, the margin upside depends on UBC quality and energy costs through 2027. The best-positioned rollers will lock in feedstock and optimize melt yield.

Novelis Achieves Breakthrough Hydrogen Test for Aluminium Recycling at Latchford Plant

Novelis

Hydrogen Melting Furnace Cuts Carbon Emissions by Up to 90%

Net Zero Innovation Portfolio and HyNet Project Drive Industry Decarbonisation

Novelis, a leading US-based aluminium rolling and recycling company, has successfully tested hydrogen as a fuel for a recycling furnace at its Latchford, UK facility. The company reported that using hydrogen in the melting process can reduce carbon emissions by up to 90% compared to conventional methods.

Hydrogen Technology Supports Major UK Decarbonisation Initiatives

These tests were conducted under the UK’s Net Zero Innovation Portfolio and the regional HyNet project, both of which focus on low-carbon hydrogen production and industrial CO₂ capture. Novelis has participated in HyNet since 2017, supporting the shift to greener metals manufacturing across northwest England and north Wales.

The firm will now expand hydrogen-based, recycled alloy production processes at multiple European plants. Novelis also plans to publish results as part of the UK Industrial Fuel Switching programme later in 2024, sharing key findings with industry partners.

Latchford Expansion Doubles UBC Recycling and Cuts Emissions

In July 2023, Novelis announced a $90 million investment to more than double the Latchford plant’s used beverage can (UBC) recycling capacity. New equipment—including a dross house, shredding and melting systems—will boost recycling capacity by 85,000 t/year and lower annual carbon emissions by over 350,000 tonnes.

This hydrogen breakthrough supports Novelis’ broader push for sustainability and could drive innovation across global recycling operations. Latchford plant manager Allan Sweeney emphasized that these results will inspire further hydrogen research and deployment company-wide.

Novelis Reports 3Q Shipment Growth Amid Rising Demand for Aluminum Products

Novelis

Novelis, a leading U.S.-based aluminum roller, reported a 1.3% increase in third-quarter rolled product shipments, driven by growing demand in the beverage can, automotive, and aerospace sectors. The company anticipates further gains as these markets continue to expand.

Quarterly Shipment Performance

During the third quarter, Novelis shipped 945,000 metric tonnes (t) of rolled aluminum products, up from 933,000t in the same quarter of 2022. Regionally, shipments varied:

• North America: Increased to 395,000t from 390,000t.
• Asia: Rose to 159,000t from 155,000t.
• South America: Jumped by 16% to 158,000t.
• Europe: Declined to 233,000t from 252,000t, largely due to operational disruptions at the company’s Sierre, Switzerland, plant caused by flooding in June.

The Sierre facility resumed partial operations in September, but production is expected to remain below full capacity for the remainder of the year.

Expansion and Market Growth Outlook

Despite the European setback, Novelis remains committed to its growth strategy. The company is on track to commission its new rolling and recycling plant in Bay Minette, Alabama, in the second half of 2026. Once operational, the facility will have an annual capacity of 600,000 tonnes, divided as follows:

• 420,000 t/year for beverage can packaging.
• 180,000 t/year for automotive and specialty aluminum production.

Market trends support Novelis' growth expectations:

• Beverage Packaging: Demand is projected to grow at a 4% annual rate due to increased consumer preference for canned beverages.
• Automotive: Demand is forecast to rise at a 6% annual rate, fueled by the growing popularity of trucks and SUVs in North America.

Financial Performance

Despite the rise in shipments, Novelis’ third-quarter profit declined to $129 million, compared to $157 million in the same period last year. The decrease reflects ongoing challenges in European operations and increased operational costs.

Novelis to Supply Low-Carbon Aluminum to Velux in Long-Term Sustainability Deal

Novelis

Strengthening Sustainability in the Aluminum Supply Chain

Novelis has signed a long-term agreement to supply low-carbon aluminum to Danish window manufacturer Velux Group, reinforcing the push for sustainable materials in building products. The US-based aluminum roller will provide 3XXX and 5XXX series aluminum from its European facilities for Velux’s roof windows and accessories. This deal builds on a 2022 letter of intent between the two companies, marking a firm commitment to reducing emissions across their value chains.

Driving Emissions Reduction Through High-Recycled-Content Aluminum

The low-carbon aluminum supplied by Novelis will contain at least 70% recycled content, significantly lowering the carbon footprint of Velux’s products. The collaboration targets a carbon intensity of 3 kg CO2eq per kilogram of flat-rolled aluminum or below by 2030. This aligns with Velux’s goal of halving its scope 3 emissions within the same period. By replacing virgin materials with recycled aluminum, both companies are addressing the high emissions intensity typically associated with primary aluminum production.

The partnership also positions Novelis as a key supplier in Europe’s transition to circular aluminum production. Its European facilities will play a central role in ensuring consistent supply while meeting stringent sustainability benchmarks. As demand for low-carbon aluminum continues to grow in the construction sector, such agreements provide long-term stability for both producers and buyers.

The Metalnomist Commentary

This Novelis–Velux agreement is a clear example of how upstream–downstream collaboration can accelerate decarbonization in aluminum-intensive industries. By embedding high-recycled-content aluminum into mainstream construction products, the partnership not only reduces emissions but also signals a broader market shift toward circular economy principles. The move could encourage similar agreements across other industrial sectors where carbon-intensive metals remain essential.

Novelis and Fives cut Voerde foundry emissions by 40%

Novelis

Novelis and Fives cut Voerde foundry emissions by 40% after upgrading three melting furnaces. The project also delivers significant energy savings at the casting site. Novelis and Fives cut Voerde foundry emissions by 40% while improving operational efficiency. Emilio Braghi said the upgrade cuts footprint and boosts efficiency.

Furnace upgrades target energy efficiency and practical decarbonisation

Fives installed TwinBed II burners on three aluminium melting furnaces. Its team in Bilbao managed the execution and commissioning. The upgrade strengthens furnace control and reduces fuel losses. Meanwhile, the site can translate process stability into lower operating costs.

Low-carbon billets support automotive and aerospace supply chains

The Voerde foundry produces custom billets for automotive and aerospace customers in Germany. Lower-emission melting supports stricter OEM sustainability requirements and customer audits. Meanwhile, energy savings can protect margins during volatile power markets. Novelis and Fives cut Voerde foundry emissions by 40% and reinforce the business case for decarbonised aluminium processing.

The Metalnomist Commentary

Foundry decarbonisation now moves fastest through furnace efficiency and burner retrofits. Meanwhile, billet buyers increasingly reward measurable emissions cuts with preferred sourcing. Therefore, upgrades like Voerde can shape contract competitiveness, not just compliance.

Steel replaces aluminum in autos as Cleveland-Cliffs courts OEMs

Cleveland-Cliffs

Steel replaces aluminum in autos as Cleveland-Cliffs seizes a rare opening in the US market. The steelmaker has completed a trial that used an automaker’s aluminum stamping equipment to press exposed steel body parts, without any tooling change. As a result, Cleveland-Cliffs now supplies routine production to that OEM and is fielding fresh inquiries from other automakers.

Steel replaces aluminum in autos after Novelis Oswego fire

The Novelis Oswego hot-mill fire created the moment in which steel replaces aluminum in autos more visibly. The blaze disrupted US automotive-body sheet supply, particularly for Ford and other large OEMs that rely on Novelis’ aluminum sheet. Cleveland-Cliffs moved quickly to demonstrate that corrosion-resistant steel stampings can run on existing aluminum presses with “no defects”, avoiding the high cost and delay of retooling.

However, a full structural swing back to steel still faces weight and fuel-efficiency headwinds. Automakers shifted to aluminum a decade ago to meet tightening emissions and mileage rules. Any broad move where steel replaces aluminum in autos will depend on advanced high-strength steel grades matching lightweighting targets, not just short-term supply disruptions.

What the steel pivot means for metals supply chains

The trial underscores how supply shocks can reopen material choices across automotive platforms. If more OEMs validate exposed steel on aluminum stamping lines, some incremental body-in-white demand could migrate from aluminum sheet back to coated automotive steel. That would tighten US flat-rolled steel balances while easing some pressure on aluminum body sheet during Novelis’ recovery.

Yet the aluminum industry is already mobilising its response. Novelis plans to restart its Oswego hot-rolling mill in December, far earlier than initial expectations. Other aluminum rollers are also qualifying alternative lines and products to backfill lost automotive-body sheet volumes. In that environment, Cleveland-Cliffs’ initiative is less a permanent displacement and more a strategic wedge into future platform decisions.

Focus keyphrases: steel replaces aluminum in autos, automotive-body sheet, Cleveland-Cliffs steel, Novelis Oswego fire

The Metalnomist Commentary

This episode shows how operational disruptions can quickly spill into long-term material strategy debates. Steelmakers that can prove drop-in compatibility on existing aluminum tooling gain leverage in negotiations over future model cycles. For metals suppliers on both sides, the real contest will be decided not by one fire, but by who can best align cost, weight and security of supply over the next decade.

SDI aluminum hot-rolled coil for automotive sheet eases US supply crunch

SDI aluminum

SDI aluminum hot-rolled coil for automotive sheet is arriving just as US automakers face a severe supply crunch. The steelmaker produced and qualified aluminum hot band for automotive use in the third quarter, ahead of its original schedule. This SDI aluminum hot-rolled coil for automotive sheet enters the market just after a major fire shut Novelis’ Oswego hot-rolling mill until early 2026. As a result, OEMs struggling to secure body sheet now see SDI’s Columbus, Mississippi mill as a timely alternative source.

Fortuitous ramp-up amid Novelis outage and tariff risks

The Novelis outage has tightened the US automotive sheet market and forced contingency plans that carry heavy costs. The company can import hot band from Europe, but those volumes face 50pc US import tariffs that squeeze margins. Against this backdrop, SDI aluminum hot-rolled coil for automotive sheet offers domestic hot band that avoids tariff penalties. Market participants have also floated the option of Novelis sourcing hot band from US competitors, although the firm has not confirmed this path.

Meanwhile, SDI emphasized that confidentiality agreements limit what it can disclose about specific counterparties. Even so, management highlighted that Aluminum Dynamics has reacted to customer needs “with surprising speed” amid recent supply shocks. The timing of SDI’s ramp-up allows it to backstop the market while accelerating qualification in demanding automotive programs. Therefore, the SDI aluminum hot-rolled coil for automotive sheet story is as much about relationship-building as it is about volume.

Columbus ramps capacity, moves toward higher-margin mix

SDI’s Columbus rolling mill is designed for 650,000 t/yr of flat-rolled aluminum once fully ramped. The company plans to allocate 45pc of output to can sheet, 35pc to automotive and 20pc to industrial markets. This mix positions the new platform squarely in higher-margin end uses where security of supply is critical. Early qualifications in 5754 automotive alloy hot band should help SDI move faster into premium automotive body and structural sheet.

At the same time, SDI is commissioning three of four casthouses producing 3XXX, 5XXX and 6XXX series ingots. It already supplies 3003, 3104 and 5052 flat-rolled products for can and industrial markets, broadening its commercial base. The two tandem mills will start in phases, with the first due in November and the second targeted for early 2026. A new continuous annealing solution heat-treatment (CASH) line is expected in the same window, enabling full automotive-quality finishing.

Operating losses in the aluminum segment widened to $56.5mn in the quarter as ramp-up costs hit the P&L. However, segment revenue still grew by 6.2pc to $71mn as volumes and product scope increased. Management expects that faster certifications and a richer product mix will pull the business toward profitability from 2026 onward. For automakers and Tier 1s, the key takeaway is that US rolling capacity is arriving just when the market needs redundancy.

The Metalnomist Commentary

SDI’s move into aluminum comes at an unusually favorable point in the automotive sheet cycle. With Novelis constrained and tariffs complicating import options, qualified domestic hot band carries strategic value beyond price alone. If Columbus hits its product-mix and ramp targets, it could permanently reshape competitive dynamics in North American auto sheet.

Novelis Sees Rebound in 2Q Demand as Beverage Can Shipments Surge Globally

Novelis has reported a significant rebound in demand for its can sheets in the second quarter of 2024, driven by stabilizing end-user demand across the globe. The aluminum rolling giant noted that beverage packaging customers increased their offtake during the quarter ending on June 30, helping to offset a partial slowdown in automotive demand in certain regions.

The company's quarterly flat rolled product shipments rose to 951,000 metric tons, a 8.2% increase from 879,000 metric tons during the same period in 2023. This growth was primarily attributed to the normalization of beverage can demand, which followed a period of inventory reductions leading into the quarter.

Regionally, South America saw the most significant growth, with shipments soaring by 28% to 111,000 metric tons compared to the previous year. North American deliveries increased by 5% to 388,000 metric tons, while European shipments rose by 6.5% to 261,000 metric tons. Asia also saw a modest increase, with shipments up 4% to 159,000 metric tons.

Automotive demand showed mixed results, varying by region. In Europe, automotive shipments declined, while Asia experienced improvements. In the United States, Novelis began operations at its new automotive recycling facility in Guthrie, Kentucky, during the quarter.

Looking ahead, Novelis confirmed that its major projects, including the rolling mill in Bay Minette, Alabama, and the recycling facility in Busan, South Korea, are on track for completion between July-December 2026 and January-June 2025, respectively. Additionally, the company announced the expansion of its used beverage can (UBC) capacity at its Latchford, UK, plant within the quarter.

Despite the growth in shipments, revenue rose slightly to $4.2 billion from $4.1 billion in the prior year, while profits dipped marginally to $150 million from $156 million over the same period.

Ford First-Quarter Sales Fell as Aluminium Supply and EV Weakness Hit Deliveries

Ford EV

Ford first-quarter sales fell in January-March as lower F-Series truck deliveries, weaker EV demand, and aluminium supply disruption weighed on the US automaker. Total vehicle sales declined by 8.8% on the year to 457,000 units.

Ford first-quarter sales were affected by production timing as the company worked to recover lost output tied to Novelis outage at its Oswego, New York, aluminium rolling facility. The disruption has exposed how dependent high-volume vehicle platforms are on stable aluminium sheet supply.

Ford first-quarter sales also reflected weaker electric vehicle momentum. Sales of all-electric and hybrid models fell by 35% to 48,000 units, while internal combustion engine vehicle sales declined by 4.3% to around 409,000 units.

F-Series Production Shows Aluminium Supply Chain Vulnerability

Ford’s F-Series truck sales fell by 16% on the year to 160,000 units in the first quarter. F-150 production declined by 11% to 137,700 trucks, while Super Duty output dropped by 17% to 74,900 units.

The decline matters because the F-Series is one of Ford’s most important profit engines. Any production disruption in the truck platform can have an outsized effect on revenue, margins, dealer inventory, and supplier scheduling.

The Novelis Oswego outage remains a key constraint. Ford expects the recovery in vehicle production to be weighted toward the second half of 2026, while warning that Novelis’ restart could be uneven.

Ford previously estimated that temporary aluminium sourcing costs could reach $1.5bn-2.5bn this year because of the Oswego fires. That cost pressure shows how one upstream rolling disruption can flow directly into automotive manufacturing economics.

EV Sales Weakness Adds Pressure to Ford’s Product Mix

Ford first-quarter sales were also hit by the company’s shift away from some EV production and the expiration of EV tax credits. Reduced availability of discontinued models added further pressure to deliveries.

SUV sales fell by 7.8% to 186,000 units, while Mustang sales rose by 50% to 14,000 units. This mixed performance shows that Ford’s portfolio remains uneven as the company balances combustion vehicles, hybrids, EVs, and high-margin trucks.

The EV decline is strategically important because automakers are still trying to manage battery costs, consumer demand, policy incentives, and production discipline. Lower EV volumes can affect demand for battery materials, power electronics, aluminium structures, copper wiring, and rare earth magnet supply chains.

For the wider metals market, the bigger lesson is clear. Automotive demand is not only shaped by consumers, but also by material availability, rolling capacity, battery economics, and policy support.

The Metalnomist Commentary

Ford’s results show that automotive production is now highly exposed to upstream material bottlenecks. The Novelis outage turned aluminium sheet supply into a direct constraint on truck output, while weaker EV sales added another layer of demand uncertainty.

Kibar Americas Fairmont Facility Acquisition Gives Assan Its First US Aluminum Plant

Kibar Americas

Kibar Americas Fairmont facility acquisition gave Turkey-based Assan Aluminyum its first manufacturing footprint in the US. Kibar Americas, a subsidiary of Assan, bought Novelis’ former aluminum rolling facility in Fairmont, West Virginia.

The deal gives Kibar Americas an established industrial site with cold-rolling and finishing capabilities. The 380,000ft² facility is expected to support production of aluminum foil products, although the company is still evaluating future use options.

Kibar Americas Fairmont facility plans matter because aluminum foil demand remains tied to packaging, industrial applications, energy systems, electronics, and flexible materials supply chains. A US manufacturing base also gives Assan a closer position to North American customers.

Fairmont Site Offers Ready Aluminum Rolling Infrastructure

The former Novelis site gives Kibar Americas an existing production platform rather than a greenfield project. Its cold-rolling mill and finishing capabilities could shorten the path toward US-based aluminum foil output.

Novelis announced in March 2025 that it would close the Fairmont facility by 30 June 2025 as part of a portfolio consolidation plan. Kibar’s acquisition keeps the site inside the aluminum value chain and could preserve industrial optionality in West Virginia.

The transaction details were not disclosed. However, the strategic meaning is clear: Kibar Americas Fairmont facility acquisition allows Assan to expand beyond its Turkish production base and enter the US market with physical manufacturing capacity.

Assan Aluminyum Extends Its Foil Strategy Into the US

Assan Aluminyum currently has 360,000 t/yr of flat-rolled aluminum capacity across its Istanbul and Kocaeli facilities. Of that total, 130,000 t/yr is dedicated to aluminum foil output.

The Fairmont acquisition could complement that existing foil platform. It may help Assan reduce logistics distance, improve customer responsiveness, and manage trade or tariff exposure in the North American market.

For the US aluminum sector, the deal shows continuing interest in downstream rolling and foil capacity. While primary aluminum production faces power-cost pressure, downstream aluminum processing remains strategically relevant for packaging, manufacturing, automotive, and industrial supply chains.

The Metalnomist Commentary

Kibar’s move shows that established US rolling assets still carry strategic value, even after major producers consolidate capacity. For Assan, the Fairmont site could become a foothold for building a North American aluminum foil platform rather than only an overseas acquisition.