Century Aluminum Applauds Biden Administration Final Rules on 45X

Rhea-AI Summary

Century Aluminum (NASDAQ: CENX) welcomes the Biden Administration's final guidance for the Advanced Manufacturing Production Tax Credit (section 45X) under the Inflation Reduction Act. The rules now include certain raw materials in production cost calculations for the tax credit, supporting domestic manufacturing of primary aluminum and critical minerals. CEO Jesse Gary expressed satisfaction with the inclusion of raw materials in the tax credit calculation. The company will provide more details about the impact during its Q3 earnings call on November 4, 2024.

Positive

• Inclusion of raw materials in production cost calculations for tax credit determination
• Government support for domestic manufacturing through tax incentives
• Potential financial benefits from production tax credits

Negative

• None.

Insights

Policy Analyst

The finalization of the Advanced Manufacturing Production Tax Credit (45X) rules marks a significant policy development for U.S. primary aluminum producers. The inclusion of raw materials in production cost calculations for tax credit purposes represents a substantial financial benefit for Century Aluminum, the largest U.S. primary aluminum producer.

This policy enhancement aligns with broader industrial strategy goals, potentially improving CENX's cost competitiveness against international producers. The timing is particularly relevant given the growing demand for aluminum in green energy infrastructure. The inclusion of raw materials in the calculation base could significantly increase the tax credit's value, though specific financial impact details are pending the Q3 earnings call.

Manufacturing Industry Analyst

The expanded tax credit framework positions Century Aluminum for improved operational economics in its U.S. facilities. With raw materials typically representing 40-50% of primary aluminum production costs, their inclusion in the tax credit calculation could substantially impact the bottom line. This development strengthens CENX's competitive position, particularly important given recent global market pressures and energy cost challenges faced by U.S. smelters.

Certain Raw Materials Eligible for Production Tax Credit for U.S. Primary Aluminum

CHICAGO, Oct. 24, 2024 (GLOBE NEWSWIRE) -- Century Aluminum (NASDAQ: CENX) applauds the Biden Administration’s move to finalize guidance for the Advanced Manufacturing Production Credit (section 45X of the Inflation Reduction Act), which promotes U.S. production of critical minerals, including primary aluminum.

“We are pleased the final rules include certain raw materials as part of our production costs in calculating the tax credit that we, along with many other stakeholders, requested. This reinforces the administration’s steadfast support of domestic manufacturing,” said Jesse Gary, CEO. “We’re proud to lead domestic production of primary aluminum and to help drive our nation’s green energy transition.”

The company will provide additional information about the impact of the final rules during the upcoming third quarter earnings call, scheduled for Monday, November 4, 2024, at 5:00 p.m. Eastern time.

About Century Aluminum Company
Century Aluminum is an integrated producer of bauxite, alumina, and primary aluminum products. Century is the largest producer of primary aluminum in the United States, and also operates production facilities in Iceland, the Netherlands and Jamaica. Visit www.centuryaluminum.com for more information.

Cautionary Statement
This press release and statements made by Century Aluminum Company and its management contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to the "safe harbor" created by section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements are statements about future events and are based on our current expectations. These forward-looking statements may be identified by the words "believe," "expect," "hope," "target," "anticipate," "intend," "plan," "seek," "estimate," "potential," "project," "scheduled," "forecast" or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," "might," or "may."

Where we express an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, our forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from future results expressed, projected or implied by those forward-looking statements. Important factors that could cause actual results and events to differ from those described in such forward-looking statements can be found in the risk factors and forward-looking statements cautionary language contained in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and in other filings made with the Securities and Exchange Commission. Although we have attempted to identify those material factors that could cause actual results or events to differ from those described in such forward-looking statements, there may be other factors that could cause actual results or events to differ from those anticipated, estimated or intended. Many of these factors are beyond our ability to control or predict. Given these uncertainties, the reader is cautioned not to place undue reliance on our forward-looking statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

INVESTOR CONTACT
Ryan Crawford
investorrelations@centuryaluminum.com
(312) 696-3132    

MEDIA CONTACT
Tawn Earnest
614-698-6351

FAQ

What is the 45X tax credit announced for Century Aluminum (CENX)?

The 45X tax credit is an Advanced Manufacturing Production Credit under the Inflation Reduction Act that includes raw materials in production cost calculations for primary aluminum manufacturing, supporting domestic production.

When will Century Aluminum (CENX) discuss the impact of the new 45X tax credit rules?

Century Aluminum will discuss the impact of the new tax credit rules during their third quarter earnings call on November 4, 2024, at 5:00 p.m. Eastern time.

How does the 45X tax credit benefit Century Aluminum (CENX)?

The tax credit benefits Century Aluminum by including raw materials in production cost calculations, potentially reducing their tax burden and supporting their domestic manufacturing operations.