Aluminium supply crunch threatens Asia’s clean energy push amid Iran war

Asia's clean energy initiatives are facing supply chain disruptions due to recent attacks on Middle Eastern aluminium smelters. On March 28th, Iranian missile and drone attacks targeted Emirates Global Aluminium’s Al Taweelah and ALBA facilities, resulting in an estimated loss of 1.6 million tonnes of aluminium production. This disruption, occurring amid a blockade of the Strait of Hormuz, threatens to increase costs for essential clean energy components like solar panels and wind turbines. Countries in Asia, including Indonesia, Vietnam, and the Philippines, have been increasing their adoption of green infrastructure, driven by high energy prices. However, these projects are now facing uncertainty as a result of the reduced aluminium supply.