Department of Defense Grants Constellium’s Muscle Shoals $23 Million to Boost Aluminum Casting Capacity

The Department of Defense has announced a $23 million award to Constellium Muscle Shoals LLC, located in Muscle Shoals, Alabama, through the Defense Production Act Investment (DPAI) program. This funding is designated to enhance the company's annual aluminum casting production capacity, ensure reliable supply for U.S. mills, and bolster surge capacity to meet global U.S. security commitments. This initiative aligns with the 2024 National Defense Industrial Strategy, which aims to strengthen domestic production capabilities and improve supply chain resilience.

Constellium Muscle Shoals will allocate $23 million in funding to expand its annual aluminum casting capacity by up to 300 million pounds. This enhancement will enable the plant to increase its use of recycled aluminum, thereby reducing reliance on primary metal sources and providing a more sustainable supply option. The additional capacity will offer the U.S. industrial sector a robust, self-reliant domestic source of aluminum rolling ingots. Furthermore, Constellium Muscle Shoals is a significant supplier of aluminum sheets for both the packaging and automotive industries, underscoring its critical role in various key markets.

This award to Constellium Muscle Shoals represents the latest in a series of 18 grants issued by the Defense Production Act Investment (DPAI) program, which has allocated a total of $381 million across multiple sectors since the beginning of fiscal year 2024. The DPAI program is administered by the Manufacturing Capability Expansion and Investment Prioritization (MCEIP) within the Office of the Deputy Assistant Secretary of Defense for Industrial Base Resilience. This ongoing funding effort aims to bolster domestic manufacturing capabilities and ensure a resilient industrial base, supporting the nation’s strategic and defense needs through enhanced production and supply chain reliability.

Dr. Laura Taylor-Kale, Assistant Secretary of Defense for Industrial Base Policy, underscored the vital role of aluminum castings in numerous defense applications, such as flight-critical structural components, rocket and space systems, and lightweight armor for ground vehicles. She noted that the award will help tackle the capability and capacity challenges currently faced by the U.S. aluminum casting industry. These challenges stem from an inadequate workforce and complex government regulations. The support aims to bolster the industry’s ability to meet critical defense needs and ensure the availability of high-quality aluminum castings for national security applications.

Constellium Muscle Shoals stands as a cornerstone in the aluminium sheet industry, catering predominantly to the packaging and automotive sectors. The facility's robust production capabilities, exceeding a billion pounds of finished aluminium coils annually, position it as a key supplier within these markets. Furthermore, Muscle Shoals' state-of-the-art recycling center, with a capacity to process an equivalent of 20 billion aluminium cans per year, not only supports sustainable practices but also reinforces the plant's role as a circular economy leader.