Alcoa Warns US Aluminum Plants Unviable Without State Support

Published: May 14, 2025 09:09

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[US Aluminum Plants Unlikely Without State Support, Says Alcoa]
Alcoa's Chief Commercial Officer, Renato Bacchi, stated at the CRU World Aluminium Summit that the U.S. aluminum industry will not build new smelters without government assistance, particularly in reducing electricity and construction costs. He emphasized that smelters cannot compete for power with AI data centers, which can afford significantly higher energy prices. Bacchi also noted that constructing smelters in the West is three to five times more expensive than in Asia. Despite U.S. efforts to revive domestic aluminum production, including 25% tariffs on imports, Alcoa warns that such policies alone are insufficient. CEO Bill Oplinger previously estimated that replacing U.S. aluminum imports would require five to six new smelters, each demanding massive energy—equivalent to over ten Hoover Dams.

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