US to Build First Aluminum Smelter in 50 Years in Oklahoma

INOLA, OK – January 26, 2026 – In a landmark move set to reshape the American industrial landscape, Century Aluminum and Emirates Global Aluminium (EGA) have announced a joint venture to build the first new primary aluminum smelter in the United States in nearly half a century. The state-of-the-art facility, planned for a site in Inola, Oklahoma, represents a multi-billion dollar investment poised to more than double the nation's primary aluminum production and create thousands of American jobs.

The agreement marks a significant reversal of a decades-long decline in the U.S. primary aluminum sector, which has seen numerous smelters close due to global competition and high energy costs. The new plant is projected to produce 750,000 tonnes of aluminum annually, a massive injection of capacity into a market that currently relies on imports for approximately 85% of its needs. The project is expected to generate over 1,000 permanent manufacturing jobs and more than 4,000 jobs during its construction phase, which is scheduled to begin by the end of 2026.

A Revival for American Manufacturing

The sheer scale of the Inola project signals a potential new era for American heavy industry. By significantly boosting domestic supply, the smelter aims to reduce the country's heavy reliance on foreign aluminum, a vulnerability that has raised concerns for national security and supply chain stability, particularly within the defense and aerospace industries.

The American Primary Aluminum Association (APAA), a trade group championing the project, hailed the announcement as a monumental step forward. "This partnership between Century Aluminum and EGA is the biggest step yet toward making the nation's largest smelter featuring the world's most advanced smelting technology a reality," remarked APAA President Mark Duffy in a statement.

The economic ripple effects for Oklahoma are expected to be substantial, with the APAA projecting an annual economic impact measured in the billions. The influx of high-paying manufacturing and construction jobs is anticipated to invigorate the local economy in Inola and the surrounding region, stimulating demand for housing, services, and supporting infrastructure. The partnership is structured with EGA, the world's largest "premium aluminum" producer, holding a 60% ownership stake, while U.S.-based Century Aluminum will own the remaining 40%.

The Tariff Debate and Economic Policy

Proponents have been quick to link the historic investment directly to the Trump administration's trade policies. The APAA credits the Section 232 tariffs, which imposed a 50% duty on certain aluminum imports, as the primary driver making the project economically viable.

"President Trump's 50% aluminum tariff is the rocket fuel propelling this historic growth in America's aluminum industry," Duffy stated, adding that the policy is "delivering billions of dollars in new investment for our country and creating over 5,000 new American jobs that will strengthen U.S. economic and national security."

This perspective frames the tariff as a successful tool of industrial policy, designed to protect domestic producers from foreign competition and incentivize onshore investment. However, the broader impact of the Section 232 tariffs remains a subject of intense debate among economists and industry analysts. While they have provided a protective buffer for primary producers like Century Aluminum—whose stock price surged 148% in the year leading up to the announcement—they have also increased costs for downstream manufacturers. Industries that consume large quantities of aluminum, such as automotive, construction, and beverage packaging, have faced higher material prices, with some critics arguing that these costs offset the job gains in the primary metals sector. The Inola project will undoubtedly become a central case study in the ongoing analysis of whether such protectionist measures ultimately yield a net benefit for the U.S. economy.

A Bet on Greener, Advanced Technology

Central to the project's viability and public image is the promise of deploying "the world's most advanced smelting technology." The smelter will utilize the 10th generation EX technology developed by EGA, a company recognized as a global leader in industrial innovation by the World Economic Forum.

Aluminum smelting is an notoriously energy-intensive process, traditionally associated with a significant carbon footprint. EGA's technology aims to mitigate this by focusing on efficiency. Over the past three decades, the company has refined its processes to reduce the electricity required per tonne of aluminum by over 37%. The new EX technology is designed to be even more efficient, with projections suggesting it could cut greenhouse gas emissions by 5% to 12% per tonne of aluminum produced compared to older methods.

This focus on advanced, lower-emission technology is critical. It not only reduces operational costs in an energy-hungry industry but also addresses growing pressure for more sustainable manufacturing practices. However, the ultimate environmental footprint of the Inola smelter will depend heavily on its power source. While the technology itself is more efficient, the facility will still require a massive and constant supply of electricity. The project's long-term sustainability will be determined by the mix of energy—whether from natural gas, the regional grid, or dedicated renewable sources—that powers its operations.

Both partners bring considerable financial and operational expertise to the venture. EGA, an industrial powerhouse in the UAE, reported an adjusted EBITDA of $2.5 billion in 2024 and has a long track record of successful large-scale projects. Century Aluminum, a major U.S. producer listed on NASDAQ, has demonstrated strong financial performance and is backed by significant institutional investors. With engineering work already underway and production targeted for the end of the decade, this partnership represents a calculated, high-stakes wager on the future of American industrial strength.