Key Highlights:

• Section 45X aids U.S. aluminum manufacturing for key industries.

• Alcoa’s Indiana and New York smelters set to benefit under new guidelines.

• Treasury Department includes direct and indirect material costs.

• Alcoa to assess full regulatory impacts on U.S. operations.

Source: Business Wire

Notable Quotes:

Our Take:

The U.S. Treasury's final regulations on the Section 45X Production Credit underscore a pivotal shift toward bolstering domestic manufacturing of essential materials, with Alcoa standing to gain notably. By including both direct and indirect material costs, the regulation framework aligns with Alcoa’s operational needs, ensuring the production of high-grade aluminum—a key component across clean energy, automotive, aerospace, and construction sectors—is supported. This regulatory support reflects the Inflation Reduction Act's broader strategy to enhance the domestic supply chain and aligns with Alcoa’s mission of sustainable industrial progress. Continued evaluation of these guidelines by Alcoa will determine the full extent of operational benefits, potentially reinforcing the company’s role in critical supply chains nationwide.