DOJ backs $4b Oklahoma aluminium smelter as legal debate intensifies

The US Department of Justice has urged a court to dismiss Oklahoma Attorney General Gentner Drummond’s lawsuit filed on the proposed USD 4 billion Oklahoma aluminium smelter, arguing that the project would strengthen national and economic security. The move comes as the joint venture of Emirates Global Aluminium (EGA) and Century Aluminum facility in Inola faces separate legal roadblocks over environmental impacts and federal funding.

In court filings, the Justice Department stated the federal government has worked with Oklahoma “to ensure compliance with federal laws” and argued that the project’s environmental concerns should be addressed through the permitting process.

Explore- Most comprehensive and forward-looking industry-focused report — Global Bauxite & Alumina Market Forecast to 2036: Supply–Demand, Trade Flows & Price Outlook

The agency pointed to the Clean Air Act and Clean Water Act as “the appropriate mechanism to address environmental concerns” raised by Drummond.

The DOJ has asked the court to dismiss or stay the case, saying project organisers are pursuing permits that could affect the outcome of the claims and that the petition is therefore premature.

If completed, the proposed facility would be the first US primary aluminium smelter built in 40 years with a projected annual output of 750,000 tonnes of primary aluminium, doubling US primary aluminium production.

Attorneys general representing the Justice Department argued that stopping construction would “threaten America’s security by denying access to this critical material necessary for military readiness.”

Hence, the Department of Defense has partnered with the Department of Energy on the project, noting the facility’s potential to supply aluminium for defence requirements while operating at lower emissions than traditional smelters.

Explore primary aluminium suppliers, product listings and trade opportunities on the AL Biz platform.

After Inola City Council approved a 60-day moratorium and Oklahoma Attorney General and governor candidate Gentner Drummond’s lawsuit seeking to pause the project, local concerns emerged recently.

Residents of Inola have raised similar concerns in a separate lawsuit, arguing that the US Department of Energy approved up to USD 500 million in federal funding without details relating to the project’s location, capacity or partners.

Despite the ongoing legal and environmental challenges, Century Aluminum’s CEO said during an earnings call last month that the company expects to break ground by the end of 2026, with production targeted for 2029.