Aluminium Bahrain (Alba) reduced aluminium output by 19 per cent and stopped some deliveries because it could not ship through the Strait of Hormuz. Qatalum stopped production after the gas supply was disrupted following attacks on the energy infrastructure.

The conflict in the region has disrupted the supply of aluminium from the Gulf. Many smelters in countries like the United Arab Emirates, Bahrain, and Qatar are unable to meet supply contracts or have reduced operations. The closure of the Strait of Hormuz has blocked a major route for aluminium shipments.

The Gulf produces about 9 per cent of the world’s aluminium, and this supply is especially important for electric vehicles, which use more aluminium than traditional cars. Aluminium is used in body structures, battery cases, and cooling systems. A disruption in supply affects multiple parts of vehicle production at the same time.

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This has affected many global car manufacturers that depend on aluminium from the Gulf region. About 70 per cent of the Japanese aluminium comes from the Middle East region. Toyota reduced vehicle production by about 40,000 units over two months, and Nissan also reduced output. 

Toyota CEO Koji Sato said, “If this situation prolongs, needless to say, there’s going to be procurement problems.”

Much of this aluminium is made using solar power and is low-carbon. Carmakers use it to meet emission rules, so they cannot easily replace it with other aluminium. Prices have increased due to supply shortages. Aluminium prices on the London Metal Exchange rose above USD 3,544 per tonne and may increase further if the disruption continues.

The disruption has also affected other materials, including sulfur, which is used in battery production. This may increase the cost of batteries and electric vehicles.

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Emirates Global Aluminium sells about 84 per cent of its aluminium as high-quality metal for car factories. It takes months to approve a new supplier. It also makes a low-carbon aluminium called CelestiAL using solar energy. Companies such as Brembo and Hyundai Mobis use it. Hyundai Mobis agreed in 2025 to buy up to 15,000 tonnes each year.

Gulf aluminium factories had only three to four weeks of raw materials, and these are now almost finished. So, they are looking for other sources to keep running. To continue production, smelters are using other routes. They are sending materials through ports like Sohar and Jeddah. Fujairah is also used by rail, but there are still some transport limits.

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The situation has highlighted the risks in global supply chains. Car manufacturers may need to diversify their sources and reduce dependence on a single region. About 170 ships were stuck in the Persian Gulf. Rerouting has increased delivery time to about 49 days, compared to the usual 2-3 weeks.

At the same time, higher oil prices caused by the conflict may increase fuel costs, which could make electric vehicles more attractive compared to petrol and diesel cars.