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. 

Today, Europe is a significant net importer of aluminium, and aluminium demand is growing rapidly driven by the energy transition, ambitious decarbonisation targets of end-customers and focus on light-weight materials. Geopolitics and regulatory tailwinds are further boosting the need for European 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. These include access to CO2-free power, a strong industrial heritage in metals, a port and an optimised infrastructure and logistics setup. 

“We have a strong hypothesis centred around low-carbon aluminium produced in Europe, for Europe. The first step is to conduct a detailed feasibility study, and we look forward to assessing this opportunity together with the city of Kokkola and the municipality of Kronoby, Finnish authorities, and our leading partners,” says Torbjörn Sternsjö, CEO of project company Arctial. 

The project company formed by Rio Tinto, Mitsubishi Corporation, Vargas, and Tesi will finance the assessment phase, and the partners will actively support with industrial expertise and technology. As part of the project, 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 also signed a Letter of Intent (LOI) with Finland’s transmission system operator Fingrid to secure grid connection for the project. 

“Our partnership-driven approach will enable us to effectively assess this opportunity, thanks to our access to leading technology, key input factors and highly relevant industrial expertise,” Torbjörn Sternsjö adds. 

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. 

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

For interview requests please contact 

press@arctial.com 

About Arctial 

Project company Arctial will conduct a feasibility study of low-carbon aluminium production in Finland. Rio Tinto, Mitsubishi Corporation, Vargas, and Tesi are jointly financing the project company and the assessment phase while Fortum supports the feasibility study as a strategic energy partner. The partners will actively support with industrial expertise and technology. As part of the project, Rio Tinto will provide access to its state-of-the-art technology and Fortum will assist in long-term hedging strategies and electricity sourcing from its existing and new production assets. Arctial anticipates making a final investment decision regarding a production facility during 2026−2027. This decision will follow a comprehensive evaluation process, with the feasibility study serving as a crucial initial step. 

www.arctial.com