Norsk Hydro: Slovalco smelter restart

Research evidence excerpt

Norsk Hydro: Slovalco smelter restart

Deutsche Bank

Research

Rating Company Date

Hold Norsk Hydro 1 July 2026

Company Update

Europe

Norway

Reuters Bloomberg Exchange Ticker Price at 30 Jun 2026 (NOK) 89.80

NHY.OL NHY NO OSL NHY

Price Target (NOK) 110.00

Metals & Mining

ADR ISIN 52-week range (NOK) 119.45 - 57.64

NHYDY US6565316055

Slovalco smelter restart

Valuation & Risks

Liam Fitzpatrick

Slovalco smelter restart Research Analyst

Hydro has announced the partial restart of 75 ktpa from the Slovalco smelter in +44-20-754-13233

Slovakia following the plant’s closure in 2022 due to high power prices. This is a

Bastian Synagowitz

positive step for Hydro and Europe, although near-term it may add to the bearish Research Analyst

aluminium market sentiment. For Hydro, this restart will add good quality primary +41-44-227-3377

volumes at minimal capex and with the potential to add a further 100 ktpa. The

Cody Hayden

agreement between Hydro and the government establishes long-term framework

Research Analyst

conditions, including a robust compensation scheme for indirect carbon costs

+44-20-754-13230

under the EU ETS and a long-term commercial PPA. The restart is conditional on the

approval of the compensation scheme by the European Commission (this should be

a formality, in our view).

The restart is expected to cost EUR 100m (~NOK 1.1bn) and first production is

expected in Q426. The plant has a capacity of 175 ktpa, with Hydro holding 55.3%

and Penta Investments Group the remaining 44.7%. A restart of the remaining 100

ktpa is planned, but will depend on agreeing framework conditions beyond 2030

and securing additional power contracts. Assuming a similar cost base to the rest

of the Hydro smelter portfolio, we estimate that the initial 75 ktpa will add ~NOK