Emirates Global Aluminium (EGA), the largest producer of high-quality aluminum worldwide, reported resilient financial performance and substantial progress in its strategic growth plans against a backdrop of market challenges during the first half of 2025. Additionally, the company has fully written off the value of its subsidiary in Guinea.
EGA’s earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled 3.82 billion dirhams ($1.04 billion), down from 4.20 billion dirhams ($1.14 billion) in the first half of 2024. This decline was attributed to interruptions in the supply of raw materials from Guinea and the seizure of Guinea Alumina Corporation (GAC), which was partially offset by rising aluminum prices.
Abdulla Nasir Kalban, CEO of EGA, stated: “We are moving confidently towards sustainable growth by innovating aluminum production and recycling methods. Our initiatives include plans to establish the first new primary aluminum plant in the United States in decades, developing the next generation of aluminum smelting technologies, and expanding recycling operations in the UAE and the US. These efforts underline our commitment to innovation and sustainability while reinforcing our global leadership position in the aluminum sector.”
The average price of aluminum on the London Metal Exchange was $2,538 per ton, compared to $2,303 per ton in the first half of 2024. Despite significant price volatility due to uncertainties in global trade and a weakening dollar, regional premiums also fluctuated. The Japanese MJP index peaked above $220 per ton before dropping to $90 by June. In Europe, the premium on MB decreased from $360 to less than $190. In the United States, tariffs on aluminum imports surged to 50%, resulting in the MW premium rising from under $500 per ton to over $1,500 by July.
Additionally, alumina prices increased early in the year due to supply disruptions in Australia, India, Jamaica, and Brazil, before falling as supply from China, India, and Indonesia ramped up.
Bal Kildemo, CFO of EGA, noted: “We anticipate continued price volatility for aluminum in the second half of 2025, driven by disruptions in global trade. At the same time, the global demand-supply balance for aluminum is expected to show a slight deficit for 2025. In the alumina markets, we foresee ongoing price declines as production capacity in Asia continues to rise.”
EGA’s production of molten primary aluminum remained steady at 1.34 million tons, while total cast aluminum production reached 1.41 million tons, with the Emirates-owned Lechmetall contributing 10,000 tons and Spectro Alloys, a subsidiary of EGA, contributing about 33,000 tons.
The company sold 1.37 million tons of cast aluminum to over 400 customers across more than 50 countries, up from 1.31 million tons in the first half of 2024. The share of value-added products, or “high-quality aluminum,” in total sales rose to 84%, compared to 82% in the first half of 2024. Increases in sales of aluminum cylinders and plates and high-purity products mitigated the impact of reduced demand for cast aluminum due to weaker-than-expected automotive sector performance.
Sales of low-carbon aluminum products saw significant growth, with EGA selling 52,000 tons of “Celestial” aluminum made using solar energy (including 19,000 tons of “Celestial-R” blended with recycled aluminum), compared to 44,000 tons in the first half of 2024. During this period, EGA signed an agreement with Hyundai Mobis to supply up to 15,000 tons of “Celestial” aluminum annually by 2026.
Furthermore, sales of recycled “Revival” aluminum increased to 41,000 tons, up from just 2,000 tons in the first half of 2024.
On the production front, the Al Taweelah alumina refinery produced 1.14 million tons of alumina in the first half of 2025, a slight decrease from 1.22 million tons in the same period of 2024, due to the use of alternative bauxite types from suppliers outside Guinea. To mitigate the impact of these changes, EGA made adjustments to improve the refinery’s efficiency in processing different bauxite types. The company imported most of its bauxite needs from Australia during this time and, in June 2025, signed a deal with Ghana Integrated Aluminium to explore long-term bauxite import partnerships and develop railway and port infrastructure with the aim of increasing production in Ghana.
The company continues to leverage all available avenues to enhance profit margins and counter the negative impacts of the situation in Guinea. The “Success” transformation program has played a significant role in recent years, with enhancements and expansions focusing on sales, cost improvements, capital expenditures, and increasing working capital efficiency. As a result of these efforts, combined with an ongoing emphasis on production increases and the share of value-added products, EGA managed to maintain a competitive EBITDA margin of 22.8% in the first half of 2025, down from 27.5% in the first half of 2024, solidifying its leading position in the sector globally.
Kalban added: “Current market fluctuations drive us to achieve a careful balance between operational discipline and long-term strategic vision. At EGA, we are enhancing cost and capital efficiency while accelerating digital transformation and continuing to invest in future growth opportunities.”
Bauxite exports from Guinea Bauxite Company and Guinea Alumina Corporation were suspended throughout the first half of 2025. Following this period, the Guinean government unlawfully announced the termination of the foundational agreement and revoked GAC’s mining concession. These actions, along with other illegal measures taken by the Guinean government, effectively amounted to the expropriation of EGA’s investments. As a result of these actions, GAC laid off most of its employees (while providing compensation exceeding local legal requirements) and terminated all its contracts.
EGA’s underlying net profit, before adjustments related to Guinea Alumina Corporation, was 1.63 billion dirhams ($445 million) compared to 1.84 billion dirhams ($500 million) in the first half of 2024. After the adjustment related to the write-off of Guinea Alumina Corporation’s value and accounting settlements, EGA reported a net loss of 890 million dirhams ($242 million).
Kalban expressed disappointment, stating: “We are deeply frustrated that the Guinean government and its authorities chose to violate fundamental legal principles, harming investor confidence, business transparency, and long-term national interests. The expropriation of our investments in Guinea has led to increased bauxite procurement costs and decreased operational efficiency at our alumina refinery due to the need for adjustments in processing different bauxite types, along with a heightened reliance on sourcing alumina from elsewhere. Regarding the alumina refinery, we achieved progress faster than anticipated in refining adjustments in the first half of the year and are continuing to work on mitigating supply disruption impacts. We are also advancing in establishing new global partnerships for bauxite supply.”
In the first half of 2025, EGA reinforced its strategic growth plan by announcing significant advancements in its plans to build the first new primary aluminum plant in the United States since 1980. The expected capacity of the Oklahoma plant will be between 600,000 and 750,000 tons of primary aluminum annually, nearly doubling US primary aluminum production. Construction is anticipated to begin following the completion of a feasibility study by the end of 2026, with actual aluminum production expected to commence before the end of this decade.
EGA has also completed the construction of a pilot project for the next generation of smelting technology, EX, at the Al Taweelah site, with production operations now underway. This EX technology is designed to enhance aluminum production while reducing energy consumption, leveraging the capabilities of the fourth industrial revolution and AI-based analytics. This technology is currently being prepared for broader adoption in Oklahoma. In terms of recycling, EGA made significant strides, having completed the expansion of its Spectro Alloys plant in Minnesota, USA, with an annual production capacity of 55,000 tons, and began production in early July.
In the UAE, the company continues to make robust progress on the construction of the largest aluminum recycling facility in Al Taweelah, ahead of schedule and budget. Seventy-two percent of the construction work has been completed, with production expected to commence in the first quarter of 2026. The annual production capacity of the project is anticipated to be 170,000 tons of secondary aluminum cylinders.
The digital transformation efforts yielded financial impacts of approximately 48 million dirhams ($13 million) in the first half of 2025, alongside the rollout of 22 new applications leveraging fourth industrial revolution technologies. At the beginning of 2025, EGA joined the World Economic Forum’s Lighthouse Network for Fourth Industrial Revolution applications as the first industrial company in the UAE and the first aluminum company globally.
In support of the UAE’s industrial growth strategy “Project 300 Billion,” EGA supplied 153,000 tons of cast aluminum to domestic customers, compared to 149,000 tons in the first half of 2024.