Guy Chazan of the Financial Times reports that the US president’s ambitious plan to revive the industry risks being thwarted by high electricity prices. Chazan writes:
The Magnitude 7 Metals aluminium plant near the banks of the Mississippi is eerily quiet these days, its electrolysis cells dark and devoid of people, its once white-hot smelters cold to the touch.
“It breaks my heart, ‘cos I’ve seen it in all its glory,” said Greg Lester, the facility’s manager, gesturing upwards to its cavernous vaults. The plant, a short drive from New Madrid in the economically depressed Missouri Bootheel, symbolises the decline of US heavy industry. It is a slump that President Donald Trump is determined to arrest and reverse. […]
His instrument of choice is tariffs. Last month, Trump announced he was increasing levies on aluminium from 10 per cent to 25 per cent, saying imports of the metal were threatening to impair US national security. […]
In the months since its closure, Mag7’s owners have been searching for a way to bring it back online — without success.
The lack of affordable electricity has affected other producers, too. Century Aluminum announced in 2022 it was idling its smelter in Hawesville, Kentucky, citing “skyrocketing” energy costs. Alcoa closed down its Intalco smelter in Washington in 2023 for similar reasons. […]
“China annihilated us,” said one seasoned industry executive. “As one guy used to say to me, if you make something China needs, you’re going to be wealthy. If you make something China makes, you’re @#&$.” […]
Experts say the future of the US aluminium industry remains unclear. “Are tariffs the tool that will address the fundamental challenge of the primary aluminium industry, which is access to affordable electricity?” asked Sartor. […]
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