A partnership of leading industrial, energy, and climate technology-focused companies Rio Tinto, Mitsubishi Corporation, Vargas and Tesi, together with Fortum will commence a feasibility study regarding a low-carbon aluminium manufacturing facility in Kokkola and Kronoby, Finland.

Europe is a significant net importer of aluminium, and the demand of low-carbon aluminium is rapidly growing driven by the energy transition, ambitious decarbonisation targets from end-customers and an increased focus on light-weight materials. Geopolitical and regulatory tailwinds further underscore the need for European aluminium production. This makes the establishment of a European greenfield aluminium operation attractive.

As a first step, a new project company called Arctial has been formed to conduct a feasibility study to assess this opportunity across social, technical, environmental, and commercial dimensions.

A strategic location has been identified in Kokkola and Kronoby, offering several advantages for low-carbon aluminium manufacturing, including access to CO2-free power, a strong industrial heritage in metals, a port, and an optimised infrastructure and logistics setup.

Rio Tinto will provide access to its state-of-the-art AP60 technology, which is amongst the most efficient aluminium technologies currently available at commercial scale.

Fortum will support in long-term hedging strategies related to the potential facility and electricity sourcing from Fortum’s existing and new generation assets. Arctial has a LOI in place with Fingrid for grid connection, if the project is realised.

The project company anticipates making a final investment decision regarding a production facility during 2026−2027, following a comprehensive evaluation process, with the feasibility study serving as a crucial initial step.

If realised, the facility would mark the first greenfield primary aluminium development in continental Europe in over 30 years, significantly boosting the supply of domestic low-carbon aluminium in Europe.