Tiwai Point closure has silver lining for EVs

The not unexpected announcement that Rio Tinto will close its power gobbling Tiwai Point aluminium smelter is good news for the EV industry.

“It’s good news for EV owners and future EV owners,” Drive Electric chairman Mark Gilbert says.

“It removes anxiety around the availability of electricity.”

Gilbert says there’s still the question of whether more electricity in the system will mean cheaper power prices.

But he says New Zealand now has to focus on preparing a plan to transition to EVs, particularly as countries like Britain are cutting fossil fuel use which will increase EV demand.

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reported electricity company fears in October last year following reports Rio Tinto was reviewing its New Zealand operations and could close Tiwai.

Rio Tinto has now told the Australian Stock Exchange its review shows the Tiwai business is no longer viable because of high energy costs and a “challenging outlook” for the aluminium industry.

Main power supplier Meridian Energy has been given notice to terminate its power contract, ending in August 2021 when it’s expected Tiwai operations will also cease.

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has invited Meridian Energy to comment and it intends releasing a statement soon.

The aluminium industry has faced pressures recently because of impacts from the COVID-19 pandemic on industries such as vehicle manufacturing and aircraft production.

Closure of the New Zealand Aluminium Smelters (NZAS) is expected to see the loss of thousands of jobs as the Tiwai smelter employs about 1000 people directly and provides a further 1600 indirect jobs in Southland.