Hydro Invests $156 Million in New Aluminium Wire Casthouse to Support Europe’s Energy Transition

Hydro has announced plans to invest NOK 1.65 billion ($156 million) in constructing a new wire rod casthouse at its aluminium smelter in Karmøy, Norway. The facility, set to begin operations in early 2028, will produce 110,000 tonnes of aluminium wire annually for use in power cables critical to Europe’s energy infrastructure This marks Hydro’s largest investment in Norway in a decade and aligns with the European Union's goal of using sustainable materials for its energy transition.

Aluminium plays a pivotal role in renewable energy systems due to its lightweight, durable, and recyclable properties. Recognized by the EU as a critical material, aluminium is essential for transporting electricity over long distances making it indispensable for Europe’s electrification goals. Norway already supplies 40% of Europe’s aluminium production, and this expansion will further strengthen the country’s contribution.

Despite global market challenges and subdued demand in 2024, Hydro reported increased sales of low-carbon and recycled aluminium. This trend reflects growing awareness of the need for sustainable materials in renewable energy projects. The new casthouse will enable Hydro to meet this demand while enhancing product flexibility to navigate volatile markets.

The investment is part of Hydro’s annual NOK 15 billion investment plan and is pending final approval in Q4 2025 Once operational, the Karmøy facility will solidify Hydro’s position as a reliable supplier of low-carbon aluminium solutions for Europe’s decarbonization initiatives.