Navigating the Storm: The Decline of U.S. Aluminum and Its Ripple Effects

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The U.S. aluminum industry, once a global leader, now faces a pivotal moment with the potential closure of Magnitude 7, a key smelter. This development not only signals a shift in the industry but also raises questions about the future of aluminum production in the nation.

The Significance of Magnitude 7 Smelter

Magnitude 7 has been a cornerstone of the U.S. aluminum industry, contributing significantly to domestic production. Its potential closure marks a significant turning point, highlighting the challenges faced by the industry.

Factors Leading to the Smelter’s Challenges

The smelter’s struggle is primarily due to soaring energy costs, compounded by extreme weather conditions. These factors have made operations financially unsustainable, signaling a deeper issue within the industry.

Economic and Community Impact

Approximately 450 workers stand to be affected by the smelter’s closure. Beyond job losses, the impact on the local community and the broader U.S. aluminum market cannot be understated.

The Shift in U.S. Aluminum Production Over Time

From producing 30% of the world’s aluminum in 1980 to just 1% today, the U.S. has seen a dramatic decline in its production capabilities. This shift has broader implications for the country’s industrial and economic standing.

Aluminium’s Role in the Clean Energy Transition

Aluminum is vital in clean energy applications, from electric vehicles to solar panels. The decline in domestic production poses a threat to the U.S.’s clean energy transition, underscoring the metal’s strategic importance.

The Remaining Aluminum Smelters in the U.S.

With the curtailment of Magnitude 7, only a handful of smelters remain operational in the U.S. This reduction further tightens the supply of aluminum, potentially affecting pricing and availability.

Market Dynamics and Price Volatility

The aluminum market is currently experiencing volatility, with fluctuating prices and premiums. Various factors, including market demand and global supply chain issues, contribute to this instability.


The potential closure of Magnitude 7 smelter is a wake-up call for the U.S. aluminum industry. It underscores the need for sustainable solutions and support to navigate these challenging times and maintain the industry’s viability.

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