Outokumpu's $45 Million Investment for Advanced Chromium Production in the U.S.

Outokumpu's Significant Investment in Chromium Production



In a bold move signaling its commitment to sustainability and innovation, Outokumpu Corporation has announced an investment of approximately $45 million into a new pilot plant dedicated to the production of chromium metal and enriched ferrochrome in New Hampshire, USA. This initiative is a key component of the company’s EVOLVE strategy, aimed at enhancing the production of critical carbon-free materials, and reflects Outokumpu’s proactive approach towards meeting the rising demand for sustainable materials within the metals industry.

A Step Toward Sustainability



The newly planned pilot plant, set to be operational in the first half of 2027, represents a remarkable step forward in Outokumpu's strategy to scale up its proprietary technology. This technology was first unveiled during the Capital Markets Day in June 2025 and has already shown promising results in pre-pilot testing environments. The facility aims to transition production capabilities from the laboratory scale, where materials such as enriched ferrochrome and chromium metal were successfully produced (from 1 gram to 1 kilogram), to a more substantial capacity of 1 ton per day during the pilot phase.

Understanding the Production Goals



The pilot plant will specialize in producing two primary materials: enriched ferrochrome with a chrome content of 65%, and chromium metal with an impressive 90% chrome content. By adopting this innovative technology, Outokumpu aims to elevate its ferrochrome business into the realm of specialty metals, thereby enhancing market competitiveness and product offerings in line with global trends toward sustainability and advanced manufacturing practices.

Following the successful execution of the pilot phase, Outokumpu has ambitious plans to develop the first industrial-scale production plant projected to produce approximately 10,000 tons annually. The timeline for the establishment of this facility is targeted around 2029 to 2030, with expectations to fully unlock the potential of the innovative technology by 2030 and beyond.

Key Benefits and Market Opportunities



One of the most critical advantages of the new pilot plant is its ability to significantly lower the carbon footprint associated with the production of enriched ferrochrome. This product can be utilized by melt shops and has the potential to fetch higher prices compared to Outokumpu’s current offerings. Additionally, the production process is anticipated to open new pathways for generating high-purity metals, including chromium, which is increasingly being sought after in high-value sectors such as aerospace, defense, and energy.

Chromium metal is notable for its exceptional toughness and remarkable heat resistance, qualifying it for demanding applications such as fighter jet engines. This characteristic makes it a highly valuable material in markets that prioritize both performance and environmental sustainability.

Outokumpu's Vision for the Future



Stefan Erdmann, Chief Technology Officer of Outokumpu, expressed the company’s pride in progressing with their EVOLVE strategy, emphasizing the shift towards producing low-carbon metals. He stated, "Backed by years of research, we are leveraging proprietary technology targeting premium-priced, high-purity metals essential for demanding sectors. With limited Western supply and growing demand, we see a significant market opportunity for sustainable high-performance materials."

Conclusion



Outokumpu's investment highlights not only its commitment to sustainability but also its strategic positioning for future growth within the chromium market. As the world pivots towards greener technology and materials, initiatives like this place Outokumpu at the forefront of the metals industry’s transition to eco-friendly production practices. The developments at the New Hampshire pilot plant will undoubtedly influence the supply chain dynamics and open significant opportunities for Outokumpu in the global marketplace.

Topics Energy)

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