Why It Matters
U.S. primary aluminum production in 2025 fell to its lowest level since 1950, leaving the country outside the top 10 global producers and accounting for less than 1% of world output, according to a new Congressional Research Service (CRS) report.
Only two companies, Alcoa and Century Aluminum, each operate two active smelters as of October, compared with 12 companies running 23 facilities in 2000. However, the report says expanded domestic capacity might improve supply-chain resilience, but could also raise costs for manufacturers and consumers.
The Big Picture
Production has fallen roughly 86% from the 1980 peak, driven in part by energy costs. Electricity is estimated to account for up to 40% of primary production costs, and World Bank data from 2019 show a kilowatt-hour cost of $0.181 in the United States versus $0.123 in Canada.
Secondary aluminum, roughly 95% less energy-intensive than primary production, accounted for 85% of the 4.3 million metric tons of unwrought aluminum produced in the U.S. in 2025. Many defense-related products must meet purity standards and therefore contain alloys made from refined primary aluminum, while secondary aluminum often contains more impurities.
The Trump administration raised Section 232 aluminum duties to 25% for all countries, effective March 12, 2025, then to 50% for nearly all countries, effective June 4, 2025. The report says estimated average effective duties rose from 3.8% in October 2024 to 37% in December 2025, and that the Midwest Premium reached nearly 70% of the London Metal Exchange price in December 2025.
Two bills in the 119th Congress address scrap supply chains. The CANS Act of 2026, sponsored by Rep. Robert J. Wittman (R-VA), would direct the executive branch to study options to redirect scrap exports to domestic supply chains; it was referred to the House Committee on Natural Resources on March 18, 2026. The Secure Aluminum Supply Chains Act, sponsored by Rep. Haley M. Stevens (D-MI), was referred to the House Committee on Foreign Affairs on June 4. Both remain at introduction with no further action shown.
The Bottom Line
Century Aluminum expects to start construction on the first new U.S. primary aluminum smelter since 1980, in Inola, OK, by end of 2026, supported by a $500 million Department of Energy grant. The project is projected at 750,000 metric tons per year, which the report says would increase total U.S. active smelter capacity by about 94%.
Options for congressional action include grants or tax credits for smelters, greater domestic scrap use and research funding, or no action while monitoring market developments.
Access the Legis1 platform for comprehensive political news, data, and insights
Spot something wrong? Report an issue with this article
