On January 13th, Slovak Prime Minister Robert Fico stated at a press conference that the Slovak government will seek to reopen the sealed Slovalco aluminum plant. This plant was once one of the largest primary aluminum producers in Europe.
Fizó stated at a press conference held at the production base in the central region of Slovakia, in the city of Ziar nad Hronom, that he believes aluminium is a strategic material for both Slovakia and other parts of Europe, and that production should be resumed to reduce reliance on non-European imports.
The maximum production capacity of the Slovalco aluminum plant is approximately 200,000 tons per year. Due to high electricity costs, the products lost their competitiveness and the plant had reduced production several times before. The plant announced its closure in August 2022. Fizó said at a press conference: "This is an example of the 'green frenzy' in Europe."
Fizzo stated that after the closure of approximately 1.5 million tons of production capacity, the original aluminum production capacity in Europe has now shrunk to approximately 1.2 million tons per year. Currently, of the 6-7 million tons of annual demand in Europe, 70% - 80% is met through non-European imports, mainly from China and Africa.
"This (Slovalco) factory was once one of the leaders in European technology and environmental protection," Fizzo added, noting that its carbon footprint was only about one fifth of that of some of the current aluminium producers supplying to Europe.
Fizó stated that the resumption of Slovalco's operations could follow either an EU or domestic approach, but both must address the fundamental issue of high electricity prices in Europe. Fizó said he preferred the European solution because if Slovakia subsidizes production on its own, it will face huge costs. He added: "When our energy prices are four to five times higher than those in other parts of the world, EU industries cannot survive."
Fizzo suggested that one way to support the aluminium industry and other European heavy industries is to offer a "holiday" of exempting them from paying carbon emission quotas for a long period. He added that another approach was proposed by Czech Prime Minister Andrej Babis at a bilateral meeting last week, which was to set the upper limit of emission quotas at approximately 30-40 euros per ton. Currently, the trading price of emission quotas is about 90 euros per ton. Fizzo said that the European funds obtained from selling carbon quotas could be used to assist producers such as Slovalco.
Fizzo stated that his efforts to assist European heavy industry in coping with high electricity prices have received support from the Czech Republic, Hungary and Italy. He said that his specific measures will be sent to the EU leaders and the President of the European Commission Ursula von der eyen, and should be presented at the upcoming informal council meeting.
Fizó stated that the Slovak government itself intends to sign a memorandum of understanding with Slovalco, which cold help ensure further aluminum production for at least 10 years. This is the shortest time frame necessary for the resumption of operations.
The local managers who have been maintaining the facility said that if all the necessary conditions are met, production could resume as early as summer.
Slovalco is controlled by the Norwegian company Norsk ydro. The local Slovak industrial holding company Penta holds 44.7% of the shares. Approximately 70% of Slovalco's original output is used for export, one-third is used locally, and the majority is supplied to the automotive industry. Supply chain risks have emerged.
Restarting the Slovalco smelting plant might to some extent alleviate the aluminum supply risks in the region.
Natalie Scott-Gray, a senior metals analyst at financial services company StoneX, stated in a short-term market outlook released on January 12th that in Europe, aluminum production has been disappointing over the past few years, and recent supply has been further challenged by production cuts in Iceland and Mozambique. These two countries are the largest aluminum importers in the EU, accounting for 10% of the EU's imports.
In October 2025, the 300,000-ton-per-year Noreural Grundartangi aluminum smelting plant in Iceland temporarily halted the production of one series of electrolytic cells due to an electrical equipment failure.
Scott-Gray stated that the shutdown of the Century Aluminium's Grundartangi smelter will result in a 60% reduction in production within the next 11-12 months.
Subsequently, South32 failed to reach a new power supply agreement with the operator of the Cahora Bassa Hydropower Station in Mozambique, Hidroeléctrica de Cahora Bassa, and the South African power company Eskom. As a result, it decided to carry out maintenance and upkeep of Mozal Aluminium (the only aluminium smelter in Mozambique with an annual capacity of 580,000 tons) starting from March 2026.
As the Slovak smelter plans to resume operations, the aluminum trade is on the rise, while the market is concerned about the future production capacity of the largest aluminum-producing country.
"Aluminum prices rose by 11.8% from October to December, making it the third-best performing basic metal in this quarter," said Scott-Gray. In Europe, given the introduction of the carbon border adjustment mechanism and the record premiums in the United States that may pose another restriction on imports into the EU, the focus for the next quarter will still be on the availability of inventories.
The price of aluminum for three-month delivery on the London Metal Exchange was $3,185 per ton on January 12th. It has risen by $170 since the beginning of the year and is currently up by $316 month-on-month.
