Mitsui has raised its shareholding in NAAC in Brazil to lift its low-carbon aluminium supply. 

Japanese trading house, Mitsui, has increased its shareholding in Nippon Amazon Aluminium Co. NAAC. which holds a 49% stake in the Brazilian primary aluminium-producing company Aluminio Brasileiro SA. The new equity shares more than double Mitsui’s direct and indirect ownership in NAAC from 21% to 46%.  The terms of the deal were not disclosed.

This means that Mitsui will now be entitled to offtake 140ktpy of Aluminio Brasileiro’s aluminium ingot production up from approximately 80ktpy previously.  The increased ingot production is expected to primarily be sold to Japanese consumers. Currently, Brazilian aluminium exports into the Japanese market reached 24kt in the first half of the year.

This investment will contribute to an additional supply of low-carbon aluminium, given the anticipated rise in demand from Japan’s automobile sector in the second half of 2024. Japan’s transportation sector remains the biggest demand driver for aluminium in terms of end-uses, with demand reaching 1,654kt in 2023. The automobile sector, however, faced production setbacks in Q2 of 2024 due to certification issues. A tight supply of low-carbon aluminium is expected as it is increasingly being required for a range of sectors including automotive, aerospace, construction, packaging, and electric wiring aiming to decarbonise their products.

NAAC was established in 1977 as a Japanese investment in the Amazon Aluminium Complex Project, which has invested in Aluminio Brasileiro. The Brazilian primary aluminium smelter produces green aluminium using hydroelectric energy resources with lower CO₂ emissions. This investment demonstrates a commitment to advancing decarbonisation within the aluminium industry by Mitsui with its increased access to low-carbon aluminium ingots produced in Brazil.