• Ethiopia and Rusal sign deal for a 500,000-ton aluminum smelter
• First phase requires about $1 billion in investment
• Project targets rising global demand expected to grow about 40% by 2030

Ethiopian Investment Holdings (EIH) announced on Friday, November 14, the signing of a memorandum of understanding with Russia’s Rusal to build an aluminum smelter with an annual capacity of 500,000 tons in the country.

The initiative, which will require about $1 billion for its first phase, could eventually give Africa a new large-scale plant producing this metal, which is essential for the transport, electricity, and construction sectors.

According to data from the US Geological Survey, China supplied 60% of global aluminum output in 2023, followed by countries such as India, Russia, and Canada. In Africa, where several countries also produce bauxite, including Guinea, smelting capacity remains limited and is concentrated in a handful of major facilities.

These include the Hillside project in South Africa and Mozal in Mozambique, the continent’s two largest aluminum smelters, operated by South32. They have annual capacities of 720,000 tons and 580,000 tons respectively. The region also hosts mid-sized operations such as Egypt’s Egyptalum at 320,000 tons per year and Ghana’s VALCO plant.

With the newly announced Ethiopian project, Rusal could strengthen this group of productive assets and support Africa’s overall aluminum output. The project is expected to be developed over three to four years and could have a lifespan of up to 50 years.

The two parties must still discuss implementation terms before formalizing their partnership. Preliminary work, including a feasibility study, is also planned.

The announcement comes as the aluminum market continues to expand. The International Aluminium Institute (IAI) expects global demand to rise by about 40% by 2030, requiring an additional 33.3 million tons of aluminum to meet consumption needs.