The U.S. is set to establish its first primary aluminium smelter in nearly half a century, marking a significant step towards revitalizing its domestic aluminium production. The Biden-Harris administration is injecting $500 million into Century Aluminum to kickstart this ambitious “green” low-carbon smelter project. This initiative is a response to the pressing concerns voiced by major U.S. consumers, such as Ford Motor and PepsiCo, about the dwindling state of a sector that has seen its capacity diminish dramatically from 19 to merely four operating plants over two decades.
Amidst growing aluminium demand for energy transition technologies like solar panels and wind turbines, the new smelter aims to mitigate the U.S.’s burgeoning import reliance. However, the feasibility of this green endeavor hinges significantly on Century Aluminum’s ability to secure an ample supply of green energy to power the operation.
The decline in U.S. primary aluminium production is stark, dropping from 3.8 million metric tons in 1999 to just 785,000 tons last year. The recent idling of the New Madrid smelter in Missouri further exacerbates this downward trend. Today, the country’s production capability rests with four plants, capable of a combined output of around 650,000 tons annually.
Despite the Trump administration’s 2018 efforts to stem the tide of imports with a 10% aluminium tariff, U.S. reliance on imported aluminium continues to escalate, especially as the 2022 Inflation Reduction Act (IRA) spurs growth in sectors reliant on aluminium. The World Bank has pinpointed aluminium as crucial for green energy technologies, predicting a global demand surge from 108 million tons in 2022 to 176 million by 2050.
Yet, securing the U.S.’s aluminium supply chain extends beyond funding, with the sector’s allocated $126 billion primarily funneling into tax credits rather than direct capacity expansion. The challenge of balancing shrinking domestic production with escalating demand underscores the urgency of a sector-wide reboot—a mission the Biden administration aims to address with a $6 billion package aimed at industrial decarbonization, including Century’s aluminium project.
The envisioned smelter is not only ambitious in scale, promising to double the U.S. primary aluminium industry’s size but also in its environmental aspirations. By leveraging state-of-the-art design and carbon-free energy, it aims to drastically reduce emissions compared to conventional smelters. However, the challenge of securing enough green power in a sector historically hampered by energy costs looms large.
In the interim, secondary aluminium recycling offers a greener, more immediate solution. The DOE’s Industrial Demonstrations Program is funding five metals projects, including Century’s smelter and Constellium’s zero-carbon aluminium casting plant in Virginia, alongside initiatives focused on enhancing aluminium recycling’s efficiency and environmental footprint. 
