Elkem and Landsvirkjun sign long-term power agreement in Iceland

Oslo, 22 October 2026

Elkem and Landsvirkjun have signed a new power purchase agreement (PPA) that secures long-term electricity supply at competitive terms and enhanced operational flexibility for Elkem's ferrosilicon plant in Iceland.

The new PPA superseding the existing agreement and remaining in effect until 2039, covers a contracted volume of 127 MW and is structured on a take-or-pay basis. The agreement, which provides flexibility for both parties, will from April 2029 have power price with a fixed floor price and partial link to the market price for ferrosilicon. With this mechanism, both parties benefit from higher ferrosilicon prices, while the plant remains competitive during periods with lower market prices.

"We are pleased to have reached a new agreement with Elkem, one of Landsvirkjun's longest standing customers," said Hörður Arnarson, CEO of Landsvirkjun. "Our companies have enjoyed a strong and mutually beneficial partnership for decades.  This agreement builds on that relationship and provides a solid foundation for continued cooperation. We look forward to supporting Elkem's future operations and development in Iceland."  

"Today's agreement demonstrates the value of the long-standing partnership between Elkem and Landsvirkjun," said Birkir Guðmundarson, acting plant manager of Elkem Iceland. "It gives us greater visibility and helps us preserve flexibility as we continue to improve performance and assess strategic opportunities for the plant.."

The new power agreement will improve the plant's competitiveness and strategic attractiveness. This will be an important element in the ongoing strategic review of the Iceland plant announced in the second quarter of 2026 and the continued work to evaluate all strategic alternatives to secure viable operations.

Elkem Iceland operates three furnaces and employs approximately 160 people. With an annual production capacity of 120,000 metric tonnes, the plant is one of the world's largest ferrosilicon facilities outside China. Its products are primarily supplied to customers in Europe, Japan and North America and are used in the automotive, construction, renewable energy and defence industries.

For further information, please contact:
Odd-Geir Lyngstad, VP Finance & Investor Relations
Tel: +47 976 72 806
Email: odd-geir.lyngstad@elkem.com

Marianne Stigset
VP Corporate Communications & Public Affairs
Tel: +47 411 88 482
E-mail: marianne.stigset@elkem.com

About Elkem:
Elkem is a global metals and materials company established in 1904. The company holds leading positions in silicon, ferrosilicon, foundry alloys and carbon solutions, supplying materials essential to modern society - from critical infrastructure and manufacturing to digitalisation, mobility and energy solutions. Elkem produces its materials by combining natural raw materials, renewable energy and advanced process technology, creating solutions that enable a more sustainable future. The company employs around 3,000 people, operates in more than 30 locations across Europe, Asia, the Americas and Africa, and is headquartered in Oslo, Norway where it is listed on the Oslo Stock Exchange (ELK). Driven by innovation. Powered by nature. Shaping the future.

About Landsvirkjun:
Landsvirkjun is Iceland's largest electricity producer and one of Europe's leading renewable energy companies. Wholly owned by the Icelandic state, the company generates approximately 14 TWh of electricity annually from renewable hydropower, geothermal energy and wind. Landsvirkjun supplies electricity to a diverse range of industries, including aluminium, ferrosilicon, data centers and aquaculture. The company is committed to meeting growing demand for renewable energy through continued investment in new generation capacity and sustainable development.