CENX and EGA Partner to Build Primary Aluminum Smelter in Oklahoma

Century Aluminum Company CENX and Emirates Global Aluminium (“EGA”) have announced a joint development agreement to construct a primary aluminum production facility in Inola, OK. This will be the first new primary aluminum plant to be built in the United States since 1980.

It is set to be the largest ever primary aluminum production plant in the United States. The plant is expected to produce 750,000 tons of aluminum per year, which will more than double the current U.S. production capacity.

According to the agreement, EGA will hold a 60% stake in the joint venture, while Century Aluminum will own the remaining 40%. The project will generate approximately 4,000 construction jobs during the construction phase and 1,000 permanent direct jobs once operational. The construction is targeted to begin by the end of 2026, with production expected to start by the end of the decade.

The Inola smelter will advantage from EGA’s expertise in aluminum smelting design and technology, combined with Century Aluminum’s prolonged experience and operational expertise. The project will also utilize EGA’s latest state-of-the-art EX technology and Century Aluminum’s domestic supply chains.

Currently, about 85% of U.S. aluminum demand is met through imports. The project aims to lower the dependence by expanding the domestic supply of this critical mineral and helping progress sectors such as automotive, aerospace, construction, packaging and defense.

The plant will be located at the industrial park at Tulsa Port of Inola along the McClellan-Kerr Arkansas River Navigation System, offering access to the Mississippi River system and efficient bulk freight mobility. The plant is expected to boost the development of a regional aluminum manufacturing hub in Oklahoma, creating additional jobs and opportunities.

CENX stock has gained 162.7% over the past year compared with the industry’s 47.2% growth.

CENX’s Zacks Rank & Key Picks

CENX currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the Basic Materials space are Coeur Mining, Inc. CDE, Albemarle Corporation ALB and Avino Silver & Gold Mines Ltd. ASM.

At present, CDE and ALB sport a Zacks Rank #1 (Strong Buy) each, while ASM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CDE’s 2025 earnings is pegged at 82 cents per share, indicating a rise of 355.56% year over year. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters while missing it in the remaining two, with an average surprise of 106.61%. CDE’s shares have gained 305.9% over the past year.

The Zacks Consensus Estimate for ALB’s 2025 earnings is pinned at a loss of $1 per share, indicating a 57.26% year-over-year increase. Its shares have surged 120.9% over the past year.

The Zacks Consensus Estimate for ASM’s 2025 earnings is pinned at 17 cents per share, indicating a 13.33% year-over-year increase. ASM’s shares have gained 712.2% over the past year.

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This article originally published on Zacks Investment Research (zacks.com).

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