EV Revolution
The war has blocked the only sea route for the high-grade, low-carbon aluminum EVs need. There’s no quick substitute.
Bahrain’s Alba, one of the world’s largest aluminum smelters, has declared force majeure on deliveries and cut output by 19%, citing its inability to ship through the Strait of Hormuz. Qatar’s Qatalum halted production entirely after Iranian strikes on Gulf energy infrastructure forced QatarEnergy to stop gas output on March 2.
Toyota has cut production of vehicles that rely on Gulf aluminum supplies by almost 40,000 units over two months. Nissan has trimmed its schedules.
Gulf smelters that supply Toyota, Nissan, BMW, parts makers for Mercedes-Benz, South Korea’s Hyundai Mobis and hundreds of other automotive customers worldwide are defaulting on contracts or closing down. The U.S.-Iran war has effectively shut the Strait of Hormuz to commercial shipping, cutting off one of the largest flows of automotive-grade aluminum.
