Key Gulf plants have been hit by Iranian missiles, causing a drop in output of the metal used in making solar panels and wind turbines
3-MIN READ3-MINBiman MukherjiPublished: 8:00am, 20 May 2026Asia’s clean energy push is facing heightened supply-chain risk as the Middle East conflict disrupts aluminium and nickel production and could raise costs for solar panels, wind turbines and grid upgrades.Countries such as Indonesia, Vietnam and the Philippines have installed more rooftop solar panels and other green infrastructure in recent years, driven by high power bills caused by elevated oil and gas prices. However, these green projects are facing uncertainties as the blockade of the Strait of Hormuz is affecting aluminium supplies.
Major aluminium smelters in the Middle East were struck by Iranian missile and drone attacks, according to ANZ Bank, noting the loss of nearly 1.6 million tonnes of production after the attacks on Emirates Global Aluminium’s Al Taweelah and ALBA facilities on March 28.
While Chinese companies are ramping up output of the metal, they face a regulatory cap of 45 million tonnes.
Aluminium prices on the London Metal Exchange have surged by more than 13 per cent since the start of the Iran war on February 28, or up 19 per cent in the year to date, according to Reuters. The metal’s benchmark price was trading at US$3,597 per tonne on Tuesday.
Overall, nearly 3 million tonnes of production may be affected, ANZ Bank said. According to Wood Mackenzie, a global energy research firm, the conflict could remove 3 million to 3.5 million tonnes of aluminium from production this year in the global market, which posted an output of just below 74 million tonnes in 2025.
