Government Looking to Fund Aluminum Production

Government Looking to Fund Aluminum Production

Demand for aluminum in automotive production is at an all-time high, and the U.S. government is looking to assist.

The U.S Department of Energy has proposed lending Alcoa Inc. money in order to expand the company’s aluminum production at a Tennessee factory. The proposal has set the stage for the first loan to a supplier under a dormant $25 billion fund. According to an environmental permit signed earlier this month by Alcoa and DOE representatives, the loan would help the largest aluminum producer in the U.S. expand its 100-year-old factory in Alcoa, Tenn.

SEE ALSO: Ford F-150 Sparks Aluminum Demand Spike

Alcoa is the main supplier of the aluminum being used in the all-new 2015 Ford F-150 and other automakers are expected to follow in Ford’s footsteps. Earlier this year, it completed a $300 million expansion on its factory in Davenport, Iowa to support production of the aluminum being used by Ford. The company projected last year that its sales of aluminum sheets to automakers would more than triple to $580 million in 2015 compared to $160 million in 2012.

GALLERY: 2015 Ford F-150 Live Reveal


[Source: Automotive News]

Discuss this story at our Ford forum