Sunstone, EGA to set up JV, building anode facility in UAE

China's Sunstone Development Co., Ltd. (Sunstone), a producer of pre-baked anodes, has signed an agreement with the United Arab Emirates' Emirates Global Aluminium (EGA) to establish a joint venture to build a pre-baked anode manufacturing facility in the country, according to Sunstone's announcement released on December 16. Pre-baked anodes are a key raw material used in primary aluminum smelting.

For Beijing-headquartered Sunstone, the project will give the firm overseas production capacity and further expand the company's presence in the global market, it said.

The JV will be registered in the UAE, subject to regulatory approvals from both the Chinese and UAE governments. The company name has yet to be determined. Total investment in the project will not exceed $295 million. Sunstone will hold a 55% stake in the JV and invest approximately $162.25 million, while EGA will invest $132.75 million for the remaining 45% stake, the latest announcement said.

The JV agreement followed a Memorandum of Understanding on investment signed between the two parties in May 2023 and a joint development agreement reached in May this year, Mysteel Global noted. The first phase of the project will have a production capacity of 300,000 tonnes/year, with an additional 300,000 t/y slated for a second phase expansion.

Construction of the anode production plant is scheduled to begin in the second or third quarter of 2026, with commercial production expected to start in the second or third quarter of 2028, another announcement released earlier showed.

According to a release from EGA, once operational, production from the new facility is expected to replace most of its current anode imports. Dubai-based EGA is the world's largest producer of high-purity aluminum. The company currently produces about 1.35 million tonnes of anodes annually, with the remainder of its anode requirements met through imports.

Sunstone is the world's largest independent commercial producer and exporter of pre-baked anodes. The company is registered in East China's Shandong province, with its management headquarters in Beijing. It produced approximately 3.3 million tonnes of pre-baked anodes in 2024, its annual results showed.

The UAE is the Middle East's largest producer of primary aluminum and a major producer of petroleum coke, a key feedstock for pre-baked anode production.

Written by Iris Pang, pangjunyu@mysteel.com

Edited by Russ McCulloch, russ.mcculloch@mysteel.co