Alcoa (NYSE: AA) announced today that it will curtail one third of its production capacity at its Lista smelter in Norway to mitigate high energy costs for the site.

The Lista smelter has three potlines with an annual nameplate capacity of 94,000 metric tons per year. The curtailment of one potline, or approximately 31,000 metric tons, will begin immediately and is expected to be complete within 14 days. The employees will remain to complete an orderly shutdown of the one potline and to be ready in the event of a restart.

The site is currently exposed to spot energy pricing, which has increased to above $600 per megawatt hour. In the fourth quarter of 2022, the energy situation for the site is expected to improve due to a favorable agreement with power utility Statkraft that will provide more predictable energy costs throughout the remainder of the year and into 2023.

Globally, approximately 65 percent of Alcoa’s global smelting portfolio is currently powered by long-term energy contracts linked to the LME aluminum pricing; approximately 30 percent has either fixed price or self-generated pricing, and the remaining percentage is exposed to short-term markets, which primarily covers consumption at the Lista smelter.

About Alcoa Corp.

Alcoa (NYSE: AA) is a global industry leader in bauxite, alumina and aluminum products with a vision to reinvent the aluminum industry for a sustainable future. With a values-based approach that encompasses integrity, operating excellence, care for people and courageous leadership, our purpose is to Turn Raw Potential into Real Progress. Since developing the process that made aluminum an affordable and vital part of modern life, our talented Alcoans have developed breakthrough innovations and best practices that have led to greater efficiency, safety, sustainability and stronger communities wherever we operate.

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