$4B Oklahoma Aluminium Smelter Project moves ahead with technical studies and permitting

Stock image for referential purposes only

A proposed USD 4 billion primary aluminium smelter at the Port of Inola in northeastern Oklahoma is moving through technical studies and regulatory approvals, with developers aiming to begin construction in 2027. If completed, the project would become the first new primary aluminium smelter built in the United States in nearly 50 years and significantly expand the country's domestic aluminium production capacity.

The project, known as Oklahoma Primary Aluminum, is being developed through a partnership between Emirates Global Aluminium (EGA) of the United Arab Emirates and Century Aluminum of the United States. Company officials said technical studies began in December last year and are continuing alongside engineering work and regulatory approvals.

Project Director Ziad Fares said, "We are moving forward," noting that the company remains focused on completing the technical and permitting process. An air quality permit application was submitted to the Oklahoma Department of Environmental Quality in February and remains under review.

Despite a recently approved 60-day moratorium by the Inola Board of Trustees, Fares said planning activities are continuing.

The proposed smelter will occupy about 440 acres within the 2,200-acre Port of Inola industrial park, a location selected for its direct access to rail and barge transportation through the McClellan-Kerr Arkansas River Navigation System.

According to Fares, logistics played a major role in site selection because the operation will depend on imported raw materials and will export finished aluminium products. "Our operation relies on importing raw materials and exporting finished products," Fares said.

To know the long-term bauxite market forecast, book our report: “Global Bauxite & Alumina Market Forecast to 2036: Supply–Demand, Trade Flows & Price Outlook”

The project developers are also working with Public Service Company of Oklahoma (PSO) to establish a long-term electricity supply arrangement. Fares said discussions are focused on creating an electricity supply structure that supports the smelter without placing additional pressure on Oklahoma's power grid. 

In late June, project representatives hosted a public open house in Inola that lasted nearly six hours, allowing residents to raise questions about the proposed development. Developers expect to complete a bankable feasibility study by September, with major permits and final approvals targeted before the end of the year.

If the project proceeds as planned, site construction would begin during the first quarter of 2027 and continue through 2029, with production of the plant's first hot metal expected before the end of the decade.

Government support and project incentives 

According to the Oklahoma Department of Commerce, the facility will manufacture a range of primary aluminium products, including billets, sheet ingots, foundry alloys and high-purity aluminium. 

The smelter has attracted strong backing from federal and state leaders who view it as an opportunity to rebuild domestic primary aluminium production after decades of declining capacity.

President Donald Trump has publicly endorsed the project, describing it as an important step toward strengthening American manufacturing and reducing reliance on imported aluminium. In a letter sent to the Inola City Council and residents, he said the proposed facility could become a key part of efforts to restore US production of strategic materials.

Federal support for the project also includes funding from the US Department of Energy. An amount of USD 500 million was awarded to Century Aluminum.

In addition to federal funding, state and local incentives have also been proposed. Reports indicate that Oklahoma has committed financial support for the development through a combination of direct funding and tax increment financing. However, discussions on those incentives continue alongside the project's regulatory review.

While approvals are still pending, project developers say work on engineering, permitting and commercial planning will continue throughout 2026 as they prepare for a final investment decision.

Supporters of the proposed Inola aluminium smelter believe the project could play a key role in rebuilding the United States' primary aluminium industry while strengthening domestic supply chains and manufacturing.

For forward-thinking aluminium market insights amidst supply chain and price challenges, read "ALuminium LeaderSpeak 2026"

Rebuilding domestic smelting capacity 

Speaking at a community meeting, Audrey Robertson, Assistant Secretary of Energy for Critical Minerals and Energy Innovation, said large industrial projects must deliver clear local benefits alongside national economic goals. 

Robertson said aluminium used by US manufacturers is now imported after decades of declining domestic production.

The project is expected to create around 4,000 construction jobs, about 1,000 permanent positions, and thousands of additional jobs through suppliers, contractors, logistics and related businesses.

Erran Persley, Chief Economic Development Officer for the City of Tulsa, said investments of this scale can create long-term employment opportunities while encouraging skilled workers to remain in Oklahoma. Business groups also believe reliable access to domestically produced aluminium could attract additional manufacturers and strengthen the state's industrial base.

While environmental concerns continue to be raised by some residents, supporters say the project will remain subject to environmental permitting and regulatory oversight. Developers are continuing engineering studies and permit applications as they work toward a final investment decision.

The country was once one of the world's leading primary aluminium producers. At its peak, more than 30 smelters operated across the United States, supplying millions of tonnes of metal each year to industries ranging from transportation and construction to defence and consumer goods.

A combination of high electricity costs, changing market conditions and increasing competition from overseas producers led to the closure of many American smelters. Industry officials point to events such as the energy crises of the late 1970s, the California electricity market disruptions in the early 2000s and the global financial downturn in 2008 as major setbacks for domestic aluminium production.

Today, only four primary aluminium smelters remain in operation in the United States, producing a combined output of roughly 683,500 tonnes a year.

Several defence and industry officials argued that the proposed Inola smelter could strengthen the United States' industrial and national security by restoring domestic primary aluminium production.

Brig. Gen. Andrew Ballinger said the growing dependence on imported industrial materials has weakened the country's defence manufacturing base. Drawing on his experience at the National War College and overseas deployments, he noted that many essential products are now sourced from abroad, making supply chains more vulnerable. Ballinger described the proposed smelter as an important step toward rebuilding domestic industrial capability.

Adam Burstein, Technical Director for Strategic and Critical Materials, said aluminium is a vital material for modern defence systems, but warned that the US has become increasingly dependent. 

“Projects like this come around once in a lifetime,” said Brent Skarky, senior vice president of communications for the State Chamber of Oklahoma. With the Inola aluminum manufacturing project, “We have a chance to change the trajectory of Oklahoma.”