We rely on aluminum in our everyday lives — from the phones and computers we use to work and communicate to the vehicles we drive and the infrastructure that powers our homes and businesses. The U.S. uses over 5 million tons of primary, or raw, aluminum every year. Aluminum is essential for many industries, including transportation, grid infrastructure, construction, packaging, and medical equipment. As demand for these sectors grows and the U.S. works to upgrade and expand its infrastructure, the need for aluminum will continue to rise. We project that demand could rise by as much as 40% in ten years. As we use more and more, it’s important now more than ever to ensure that primary aluminum is produced in a clean way.

Today, the U.S. aluminum industry is at a crossroads. We produce only a small share of the aluminum we consume domestically and rely heavily on imports to meet demand. At the same time, global supply is increasingly uncertain as tariffs, trade tensions, and wars reshape markets. Domestically, aluminum smelters are struggling to compete for one critical input: power.

Electricity is the single largest cost for smelters, and aluminum smelters are feeling the cost pressure as they must compete with other large electricity buyers for electricity — including data centers. Data centers can afford to pay significantly more for power, and in some cases, former industrial sites — including smelter locations — are being sold or repurposed to support this growing sector. Without access to reliable, affordable electricity, U.S. smelters are at risk of further decline, tightening supply even more.

At the same time, there is an opportunity to modernize and expand domestic production. By investing in clean, affordable energy and rebuilding U.S. smelting capacity, the U.S. can strengthen supply chains, create and sustain good-paying union jobs, support local economies, and meet growing demand with cleaner production.

Aluminum’s pathway to revitalization is clear: align industrial growth with access to affordable, reliable energy and targeted investments in domestic capacity. Today, the industry faces high costs, aging facilities, and increasing competition for power. Three critical steps are required.

• Invest in clean and affordable energy: ~80% of greenhouse gas emissions and ~40% of the cost of aluminum from fossil fuel-powered smelters stem from electricity. Smelters in states like Kentucky, Indiana, and South Carolina are tied to dirty power sources that are subject to price volatility. Ensuring access to stable, clean energy will improve competitiveness, secure jobs, and enable long-term operation.
• Build new capacity and restart smelters: The U.S. needs to expand primary aluminum production by both building new facilities and bringing idled smelters back online. Projects like the proposed new smelter in Oklahoma demonstrate new investment potential, while restarts like Mt. Holly in South Carolina — and the possibility of bringing facilities like Magnitude 7 Metals in Missouri back online — highlight near-term opportunities to quickly increase domestic supply.
• Leverage the aluminum supply chain to accelerate clean energy deployment at both the state and federal levels: By mobilizing primary and secondary producers alongside major buyers, the industry can advocate for faster buildout of clean power, expanded utility capacity, and greater access to on-site generation — unlocking the reliable, low-carbon energy needed to decarbonize aluminum production at scale.

All of this and more is needed. The good news is that the U.S. has the resources and industrial base to act. The key challenge is ensuring that energy access, market demand, and investment signals align to support a competitive domestic aluminum industry.