In a recent development, the second-largest aluminum smelter in the United States, located in southeast Missouri, has announced significant layoffs as it struggles to maintain operations. According to a local news report citing a letter from plant management, Magnitude 7 Metals LLC, the plant will not require the services of "most employees" following a curtailment of operations by January 28.

The letter, as reported by Heartland News, attributed the decision to abnormally cold weather that severely impaired operations, making it impossible to restore normal functioning. This setback highlights the vulnerability of aluminum plants in the face of adverse weather conditions.

Interestingly, the challenges faced by aluminum plants today extend beyond weather-related issues. Industrious Labs, a nonprofit organization focused on the energy transition, emphasized that the main challenge for these plants is the high cost of electricity, which accounts for around 40% of their total production costs. The closure of the Missouri plant underscores the urgent need for renewable and affordable energy sources to support vital industries like aluminum manufacturing.

Annie Sartor, the Aluminum Campaign Director for Industrious Labs, expressed concerns over the impact of this announcement on the primary aluminum industry in the United States. Sartor stressed that the Biden Administration must take swift action to secure renewable and affordable energy to sustain this essential material for the country's economy.

The closure of the Missouri plant echoes a similar event that occurred in March 2023. During that time, Alcoa, one of the industry's major players, announced the permanent closure of its 279,000 tonne-per-year Intalco aluminum smelter located in Washington state. This closure was deemed necessary to prepare the site for future redevelopment.

These closures highlight the challenges faced by the primary aluminum industry in the United States. As the country looks to strengthen its economic position and reduce dependence on imports, finding practical solutions to the rising cost of electricity becomes critical. The Biden Administration now faces the task of addressing these challenges promptly to secure a sustainable future for the aluminum industry and ensure its contribution to the American economy.