Iran war validates UAE metals production move to US
A war gaming exercise examining how the US’ aluminum supply chain would fare in the event of a large global conflict revealed its reliance on the UAE for high-purity grades of the key metal.
Last year, US officials conducted a war gaming exercise that highlighted aluminum supply chain vulnerabilities in the event of a major global conflict. Nearly 90% of high-purity aluminum, essential for defense equipment like fighter jets, originates from the UAE, according to Bloomberg. Iranian strikes on aluminum plants in Bahrain and the UAE have driven up prices.
Emirates Global Aluminum (EGA) has resumed operations at its Bahrain plant but is not anticipated to reach full capacity until the year's end. EGA is concurrently developing capacity in the United States and holds a majority stake in a $4 billion Oklahoma aluminum smelter project, slated to commence production by the end of the decade.
This new facility, the first of its kind in the US since 1980, could potentially alleviate Washington's apprehensions regarding aluminum accessibility, while simultaneously providing EGA with a respite from tariffs on exports to the US.
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