Edited by DeAnne Toto
Rusal will obtain a 40 percent stake in the project in exchange.
Ashland, Kentucky-based Braidy Industries Inc. and Russia-based En+ Group PLC have announced the execution of a letter of intent (LOI) specifying basic terms for a potential $200 million lead investment for its Braidy Atlas mill by En+ Group subsidiary, United Company Rusal PLC.
En+ Group is a leading international vertically integrated aluminum and hydropower producer. The company’s power plants have a total installed capacity of 19.5 gigawatts, including 15.1 gigawatts of hydropower assets, and 3.9 million metric tons of annual aluminum production capacity through a controlling stake in UC Rusal PLC, the world’s largest aluminum producer outside of China in 2018, which is the major consumer of En+ Group’s hydroelectricity. Rusal historically has been the U.S.’ No. 2 nondomestic supplier of prime aluminum.
The LOI will become binding after the approval of both companies’ boards. In exchange for its investment, Rusal will obtain a 40 percent share in the project, which plans to construct a greenfield aluminum rolling mill to serve the automotive and aerospace industries. Rusal will serve as Braidy’s exclusive supplier of low-carbon aluminum, providing roughly 2 million metric tons over 10 years, according to a news release issue by Braidy. This will be the world’s largest order for one mill of high-quality, prealloyed and low-carbon primary aluminum slabs. Braidy Atlas mill’s primary aluminum purchase has a market value of approximately $500 million per year, according to the company.
Read the full article here.