Emirates Global Aluminium (EGA) is in discussions with potential investors regarding an aluminium smelter investment in the US, reported Bloomberg, citing sources.
The company is said to be considering equity partners for a new plant in Oklahoma, although the amount EGA aims to raise has not been specified.
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Sources indicate that Mitsubishi is among the parties EGA is engaging with. Talks are reportedly still at an early stage.
EGA and Mitsubishi’s spokespersons declined to comment, Bloomberg reported.
The planned facility is projected to need between $5bn and $6bn in capital investment and is expected to produce approximately 750,000 tonnes per annum of primary aluminium, according to investor documents.
EGA, owned by Mubadala Investment of Abu Dhabi and the Investment Corporation of Dubai, has reportedly appointed Evercore as its financial adviser for this project.
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By GlobalDataThe United Arab Emirates (UAE) aluminium maker’s search for an equity partner comes amid growing competition for electricity in the US, driven by increased power demand from data centres supporting AI. Electricity costs represent more than half of aluminium production expenses.
EGA has noted that the Oklahoma plant construction is contingent upon obtaining “a competitive long-term” power deal.
Construction of the smelter is expected to begin in late 2026, with initial aluminium output targeted by the end of the decade.
If completed, the Oklahoma plant is expected to help decrease the US’s reliance on imported aluminium.
The US Geological Survey reported that the country imported around 50% of its aluminium consumption in the previous year.
US President Donald Trump has encouraged foreign investment to support jobs and industry, with commitments received from Middle Eastern countries such as Qatar, the UAE and Saudi Arabia.
In order to cut down foreign reliance on aluminium and boost local industry, in February, Trump announced plans to introduce new 25% tariffs on all steel and aluminium imports.
In June, the US President signed an order doubling tariffs on aluminium and steel imports from 25% to 50%.
Canada is the primary aluminium exporter to the US, providing 56% of US aluminium imports.
Canada’s trade negotiations with the Trump administration are currently stalled.
It is anticipated that these discussions will be incorporated into the review of the US-Mexico-Canada Agreement next year.
