The aluminium company based in Atlanta, Georgia, has announced its plans to open an aluminium plant in Kentucky.
The cost of the construction is anticipated to reach US$300mn, with the site having a 200,000 metric tonne capacity, and employing 125 people.
The plant will produce flat rolled aluminium – which is often used by automakers when designing lighter vehicles for fuel efficiency.
The facility will feature heat treatment and pre-treatment facilities, to be used for aluminium preparation for vehicle parts, such as hoods and doors.
Novelis will build the plant in Guthrie, on the Kentucky Tennessee border, close to the firm’s other facility in Russellville.
According to the 2017 Ducker Worldwide survey, the demand of automotive aluminium is expected to rise due to its increased use in North American passenger vehicles, especially in light trucks and SUVs.
The material is to rise by 42%, with the base year being 2015, by 2018.