Slovalco and Slovak Government seek solution for restarting aluminium smelter.
(Žiar nad Hronom, February 27, 2026)
Slovalco, a joint venture between Hydro and Penta Investments, has signed a Memorandum of Understanding (MoU) with Slovak government, establishing a framework for assessing a possible restart of the curtailed primary aluminium production at Slovalco.
The MoU reflects a shared ambition to identify solutions that can support a restart of production at Slovalco, a top-tier aluminium smelter distinguished by its modern technology. The plant ranks among Europe’s most electricity-efficient primary aluminium producers, making it a strategically important industrial asset. For Slovakia and Europe, a potential restart will strengthen security of supply for a raw material listed as critical by both the EU and NATO.
“This agreement is an important step in assessing whether Slovalco can be operated competitively and predictably after several years of challenging framework conditions in Slovakia. We appreciate the authorities’ efforts to identify solutions that can strengthen production of low‑carbon aluminium,” says Milan Veselý, CEO of Slovalco.
Primary aluminium production at Slovalco was terminated in 2023, mainly due to high power costs and adverse framework conditions in Slovakia. The casthouse in Slovalco continued its recycling operation, serving customers in the region.
The MoU clarifies the measures the Slovak authorities will pursue in the aim of supporting the commercial conditions for a restart. Full indirect carbon compensation under the EU ETS framework, a long‑term power purchase agreement on competitive terms based on renewable or low‑carbon electricity, other regulatory conditions comparable to industrial EU member states, and a predictable framework conditions are necessary to enable the restart. Slovalco and its owners will provide financing, technical expertise, and the operational support required, if the conditions support a restart.
Despite the smelter having been closed for more than three years, a restart is still considered technically feasible. Material investments have been made by the owners since 2023 to retain the restart option. Key employees, competence and operational experience built up over many years at Slovalco remain in place and are essential prerequisites for a successful and fast restart. This can generate important industrial and employment benefits for the region.
Any decision to restart will depend on whether a commercially viable restart case can be established, based on the totality of the framework conditions and a PPA on competitive market terms. A decision will be made in accordance with the owners’ standard decision-making processes and investment criteria.
The next phase involves continued processes with Slovak and European authorities, as well as commercial negotiations on power supply. The Slovak government and Slovalco aim to sign an Implementation agreement if the collaboration under the MoU is successful.
HydroHydro is a leading aluminium and renewable energy company committed to a sustainable future. Hydro’s purpose is to create more viable societies by developing natural resources into products and solutions in innovative and efficient ways.
Since 1905, Hydro has turned natural resources into valuable products for people and businesses, creating a safe and secure workplace for its 32,000 employees in more than 40 countries. More: www.hydro.com
Penta is a Central European investment group founded in 1994. It focuses on long-term investments in retail, healthcare, real estate development, financial services, manufacturing and media. Penta builds strong management teams, support innovation, digitalization, data use and artificial intelligence. Penta reinvest profits back into companies to support their ambition to become leaders in their fields. Penta group is one of the largest employers in the region—employs more than 50,000 people. Penta has offices in Prague, Bratislava, Warsaw and Limassol. More: www.pentainvestments.com/en/