Century Aluminum, a Chicago-based producer, is set to restart idled production capacity at its Mt. Holly smelter in South Carolina. This move comes as a direct result of President Trump's Section 232 tariffs on primary aluminum, which were recently doubled from 25% to 50%. The company plans to invest approximately $50 million to bring the plant, which has been operating at 75% utilization, to its full 230,000 metric tons nameplate capacity by June 30, 2026. This restart is expected to add about 10% to U.S. primary aluminum production and create 125 permanent jobs.
A crucial factor enabling this restart is an agreement in principle with South Carolina Public Service Authority (Santee Cooper) to extend the current energy contract through 2031, securing the necessary power supply. Century's CFO, Peter Trpkovski, stated the project will involve a "straight-line spend" of about $4 million per month over the next year, funding this through the company's existing balance sheet. He projects that the financial benefits, including incremental volume at favorable margins, will allow the investment to nearly pay itself back by the end of 2026 at current spot pricing levels.
While tariffs played a role, the extension of the power supply deal with Santee Cooper was arguably more critical. The Mt. Holly plant, which has not operated at full capacity since 2015, will increase its total volume to more than 220,000 metric tons per year. The broader U.S. aluminum industry still faces challenges, however, with just five primary metal production plants remaining after other smelters, like Century's Hawesville facility, were shut down due to high energy costs and competition from data centers for power. The U.S. continued to depend on imports for 60% of its internal aluminum consumption last year, and the new Oklahoma smelter, a joint venture between Emirates Global Aluminium and Century, is not expected to begin production until 2030.
