European Commission designates Arctial’s aluminium project as a strategic project

Aluminium is essential to European industries, with applications across renewable energy, defence, electrification, infrastructure, transportation, construction and packaging. Europe remains significantly dependent on imports for its primary aluminium supply, with more than 60 per cent imported from outside Europe, underlining the importance of strengthening European production capacity.

“We are pleased that the European Commission has recognised the strategic importance of this project. Europe needs greater security of supply for the materials on which its industries, energy transition and defence capabilities depend. Finland has an opportunity to make a significant contribution to Europe while creating substantial long-term economic value at home,” says Torbjörn Sternsjö, CEO of Arctial.

The Critical Raw Materials Act aims to strengthen secure and resilient European supply chains for strategically important raw materials. Strategic Project status identifies projects that can make a meaningful contribution to these objectives. Arctial’s project illustrates the scale of industrial investment that the CRMA seeks to support: if built, it would be the first greenfield primary aluminium plant in continental Europe in more than 30 years.

Finland is well positioned for new aluminium production due to its access to low-carbon electricity and stable operating environment. Combined with Kokkola-Kronoby’s industrial ecosystem, logistics and port infrastructure, this creates an opportunity to produce primary aluminium in Europe with a significantly lower carbon footprint than the global average.

Arctial’s planned project would represent an investment of approximately 4.7 billion euros (USD 5.27 billion), directly employ around 1,200 people and increase European primary aluminium production capacity by approximately 20 per cent. According to an economic impact assessment by Ramboll Finland, total annual employment effects, including indirect impacts, are estimated at around 8,500 people once operational. The project is also estimated to contribute 0.7 per cent to Finland’s GDP and generate more than 600 million euros (USD 672.84 million) in total tax impacts annually.

“This designation marks an important milestone for the project and brings us another step closer to a final investment decision. Significant work remains, and we will continue to advance the project in close cooperation with our stakeholders,” says Pekka Vauramo, Chairman of the Board of Arctial.

Note: This article has been shared by Arctial and has been published by AL Circle with its original information without any modifications or edits to the core subject/data.