Century Aluminum receives Phase One contract under DOE grant

Century Aluminum has entered Phase One of a four-phase agreement under a Department of Energy (DOE) grant initiative, originally extended in March 2024. “This step reflects a strong commitment to bolstering domestic aluminum manufacturing capacity, reducing reliance on imports and fortifying critical supply chains integral to national security and economic growth,” according to a news release from Washington-based SAFE (Securing America’s Future Energy) announcing the award.

Century was selected in March of last year by the U.S. Department of Energy (DOE) Office of Clean Energy Demonstrations to begin award negotiations for up to $500 million in Bipartisan Infrastructure Law and Inflation Reduction Act funding to build a new aluminum smelter as part of the Industrial Demonstrations Program (IDP).

Aluminum, which is used by a variety of industries from defense to infrastructure, plays an important role in ensuring U.S. economic and energy security, Century says. This contract underscores the importance of increasing domestic production to counteract vulnerabilities in global supply chains and mitigate the strategic risks posed by overreliance on imports, particularly from nations like China.

“America’s ability to lead again on production of critical materials like aluminum is essential to safeguarding its economic sovereignty and reducing exposure to geopolitical adversaries who seek to dominate global supply chains,” says Joe Quinn, executive director, Center for Strategic Industrial Materials at SAFE. “This announcement sends a strong market signal that the U.S. is prioritizing industrial resurgence in critical sectors and reinforcing its leadership in sustainable and strategic materials production.”

SAFE’s mission includes advancing policies that enhance America’s ability to produce critical materials domestically, supporting economic security and safeguarding against foreign economic coercion. Its Center for Strategic Industrial Materials (C-SIM) is dedicated to advancing resilient and secure supply chains for the industrial materials critical to America’s national and economic security. C-SIM collaborates with producers, buyers, government and nongovernmental organizations to achieve tangible policy outcomes that enhance domestic industry supply chain reliability in a global market.

The location and energy infrastructure for the new smelter have not been decided yet, though Century has said it expects to build at a site within the Ohio/Mississippi River basins. It expects the project to create more than 1,000 full-time jobs represented by the United Steelworkers union and more than 5,500 construction jobs. Century also plans to collaborate with job training organizations and local technical colleges to recruit and train employees from the local community where the smelter is located.

SAFE says the company's agreement with the DOE aligns with efforts to modernize U.S. energy systems, integrate sustainable practices and promote industrial innovation, ensuring the country’s competitiveness on a global scale.

Century, a Chicago-based integrated producer of bauxite, alumina and primary aluminum products, says its green aluminum smelter project is one of 33 across more than 20 states to receive funding designed to demonstrate commercial-scale decarbonization solutions needed to move energy-intensive industries toward net zero while strengthening local economies, creating and maintaining high-quality jobs and slashing greenhouse gas emissions.