Key Highlights:
- Emirates Global Aluminum (EGA), one of the leading aluminum producers globally, is proceeding with a $4 billion investment to establish a primary aluminum production facility in Inola, Oklahoma.
- The facility, anticipated to launch by the end of 2026, is set to produce 600,000 tons of primary aluminum and generate 1,000 job opportunities based on a memorandum of understanding with Oklahoma Governor Kevin Stitt.
- Once operational, this site, also referred to as a smelter, will be the largest in the U.S., nearly doubling the country’s aluminum production capacity, as reported by the Oklahoma Department of Commerce.
Background Information:
The establishment of the aluminum smelter aligns with a larger commitment made recently between the U.S. and the UAE to promote over $200 billion in commercial transactions, which includes a $14.5 billion investment from Etihad Airways in Boeing aircraft and GE Aerospace engines, along with various partnerships in energy and technology.
These agreements from the UAE follow substantial commitments from Saudi Arabia and Qatar, which are set to inject $600 billion and $1.2 trillion into U.S. industries respectively.
The Oklahoma project aims to strengthen the U.S. aluminum sector, which has faced challenges over the years as countries with cheaper energy costs offer lower prices, making them more competitive internationally. Currently, the U.S. is heavily reliant on aluminum imports, primarily from Canada, followed by the UAE, South Korea, Bahrain, and China, as per recent census data from the International Trade Administration.
Up until 2000, the U.S. was the top aluminum producer in the world, but a report from the Congressional Research Service indicates that by 2021, the country dropped nine positions, accounting for less than 2% of global primary aluminum production.
This decline was partly driven by the shutdown of domestic smelting operations as electricity costs rose. The number of primary aluminum facilities in the U.S. fell from 23 in 2000 to just six by 2021, according to the congressional data. Canada, Russia, and the UAE are among the leading aluminum producers today, with China dominating more than half of the global smelting capacity.
Stitt and EGA remarked that this Oklahoma production facility, pending a feasibility study approval, will mark the first newaluminum smelter in the U.S. since 1980.
“For many years, the U.S. has been a significant market for EGA, and we recognize a strong demand for our top-quality ‘made in America’ metal,” stated EGA CEO Abdulnasser Bin Kalban. “EGA possesses the expertise, innovation, and financial resources necessary to help rejuvenate this vital American industry, and I am assured that Oklahoma will provide the favorable conditions to do so.”
EGA is currently in discussions with Public Service Co. of Oklahoma and the state authorities to secure a long-term electricity supply for the facility. The company has also reached an exclusive agreement for land at the Tulsa Port of Inola, situated on the McClellan-Kerr Arkansas River Navigation System for efficient waterway transportation.
The 350-acre location will cater to aluminum production for sectors such as aerospace and defense, automotive, as well as food and beverage industries, according to the state’s commerce department, producing items including billets, sheet ingots, high-purity aluminum, and foundry alloys.
Besides the 1,000 direct jobs, the Oklahoma smelter is projected to create up to 4,000 construction jobs and establish a foundational aluminum industrial hub that encourages further economic development and job creation.