The production of this joint venture was curtailed in 2021 due to the high power prices. It further began the process of restart, but again got delayed due to Spain being hit by a nationwide power blackout on April 28, 2025, disrupting the overall operations in the adjacent smelter and refinery. Before the curtailment, the facility held the total production capacity of 228,000 tonnes annually, representing a substantial portion of the European aluminium manufacturing infrastructure.
Concerning energy, the overall aluminium industry has often faced a battle in terms of price volatility. Still, the situation in Spain created an immense challenge for Alcoa and the joint venture. Within the overall aluminium production cost, 40 per cent of it consists of electricity, an economic equation which created fuss in Spanish energy rates back in 2021.
Besides the high record of the electricity prices in Spain's wholesale market, other challenges that the company faced led to the curtailment of the aluminium smelter. This includes a lack of long-term power purchase agreements at competitive rates, growing competitive disadvantage in comparison to producers, especially in regions with lower energy costs. Lastly, ineffective governmental support mechanisms give rise to offsetting energy price volatility.
