A New Era for the European Aluminium Industry: Slovalco Smelter Prepares to Resume Production

One of the most significant developments in the European aluminium industry in recent years has emerged from Slovakia. Hydro, the Norwegian-based global aluminium producer, has announced an agreement with the Slovak government to restart primary aluminium production at the Slovalco smelter, in which it holds a majority stake. Production at the facility was suspended in 2022 due to the European energy crisis. The decision to resume operations is regarded as an important step toward strengthening Europe's strategic raw material supply and reducing its dependence on imports.

Under the agreement, an initial annual production capacity of 75,000 tonnes of primary aluminium will be brought back online. The smelter's total production capacity stands at 175,000 tonnes, while the remaining capacity is expected to be restored after 2030, depending on long-term energy market conditions and electricity supply agreements.

Hydro has announced an investment of approximately EUR 100 million to restart the facility. The project is also expected to support more than 200 jobs in the region. Production is scheduled to resume during the fourth quarter of 2026, subject to approval by the European Commission of Slovakia's indirect carbon cost compensation mechanism.

The restart of Slovalco is considered strategically important not only for Slovakia but also for the entire European aluminium industry. Since the energy crisis began, nearly 50 percent of Europe's primary aluminium production capacity has been idled due to soaring electricity costs. This has significantly increased Europe's reliance on imported aluminium while weakening the competitiveness of its manufacturing sector.

According to Hydro President and CEO Eivind Kallevik, aluminium is a strategic material for numerous industries, including energy infrastructure, transportation, defence, renewable energy, and sustainable construction. He emphasized that restarting Slovalco will strengthen Europe's industrial resilience while increasing the supply of low-carbon aluminium to the market.

Industry analysts believe this development could mark the beginning of a new phase for European aluminium production. Long-term energy security, competitive electricity pricing, and supportive industrial policies are expected to play a decisive role in restoring Europe's primary aluminium capacity and improving its global competitiveness.