- EUR 100 million investment backs production revival
- Restart hinges on EU Commission approval
Slovakia-based aluminium producer, Slovalco, is set to restart 75,000 tonnes per annum (tpa) of primary aluminium production after reaching an agreement with the Slovak government, marking a significant step towards reviving domestic aluminium output in Europe amid growing concerns over supply security.
The restart follows the curtailment of operations in 2022, when soaring electricity prices forced the smelter to suspend primary aluminium production. The new agreement establishes long-term operating conditions for the plant, including a compensation mechanism for indirect carbon costs under the European Union Emissions Trading System (EU ETS) and a long-term power purchase agreement (PPA) with state-owned energy company Vodohospodarska vystavba.
However, the restart remains subject to approval of Slovakia’s updated indirect carbon cost compensation scheme by the European Commission.
Slovalco plans to invest around EUR 100 million to resume production, supporting more than 200 jobs in the region. Commercial production is expected to begin during the fourth quarter of 2026.
The initial restart will cover 75,000 tpa out of the plant’s total installed capacity of 175,000 tpa. The remaining 100,000 tpa will depend on favourable policy support beyond 2030 and the availability of additional long-term power contracts.
The restart comes at a time when Europe’s aluminium industry continues to grapple with high energy costs and increasing import dependence. According to Norsk Hydro, nearly 50% of the EU’s primary aluminium production capacity has remained curtailed since 2022, reducing the region’s domestic metal availability.
Hydro, which holds a 55.3% stake in Slovalco, said reviving the smelter would help strengthen Europe’s industrial resilience by increasing domestic primary aluminium supply, reducing reliance on imports and providing lower-carbon aluminium to European consumers.
The development also highlights the growing importance of supportive energy policies and competitive electricity pricing for energy-intensive industries. Industry participants have consistently called for stronger policy measures, including effective implementation of the Carbon Border Adjustment Mechanism (CBAM) and compensation for indirect carbon costs, to safeguard Europe’s primary aluminium industry against global competition.
While the first phase of the restart represents only a partial recovery of Slovalco’s capacity, it signals renewed momentum for Europe’s primary aluminium sector as governments increasingly prioritise domestic production, supply chain resilience and industrial decarbonisation.
Leave a Reply