While zinc buyers spent the first half of 2026 watching LME warehouse stocks drain, something else was happening on the supply side. Boliden's expanded Odda smelter in Norway started feeding concentrate into its new roaster in the first quarter and is now ramping up toward 350,000 tonnes of annual capacity — enough to make it Europe's second-largest zinc smelter. In May, Boliden followed up with a SEK 4 billion (about $430 million) investment in its Garpenberg zinc mine in Sweden. Together, the two projects are the clearest sign yet that European zinc supply is being rebuilt rather than wound down.
For buyers of zinc die casting parts, this matters. Refined zinc availability in Europe drives the regional premiums that feed into Zamak alloy prices. New smelting capacity on the continent is the main structural force that could pull those premiums back down.
Odda: From First Feed to Full Ramp-Up
Boliden began expanding Odda in 2021, lifting nameplate capacity from 200,000 to 350,000 tonnes per year. The project — over EUR 700 million plus a EUR 100 million cost overrun — included a new roasting facility, a new sulphuric acid plant, a modernized leaching and purification plant, a new tankhouse, and an expanded foundry. The site runs entirely on fossil-free electricity, which Boliden says makes it the most climate-efficient zinc smelter in the world.
Commissioning slipped twice. First feed, originally planned for late 2024, finally happened in the first quarter of 2026. Boliden's Q1 2026 report confirmed the milestone while acknowledging setbacks during commissioning, and CEO commentary made clear that utilization will improve step by step through the year rather than jump to full output. Odda also received The Zinc Mark certification in early 2026, a responsible-production standard that matters for OEMs with ESG sourcing requirements.
The practical takeaway: Odda's extra 150,000 tonnes will arrive in the European market gradually across 2026, with full capacity more likely a 2027 story.
Garpenberg: Securing the Concentrate Side
A smelter is only as good as its ore feed. In May 2026, Boliden committed SEK 4 billion to a new hoisting system at Garpenberg, one of Europe's most important zinc mines. The six-year project supports mining of newly discovered deeper zones and is designed to sustain throughput around 4.5 million tonnes of ore per year, keeping the mine productive beyond 2030.
There is a near-term caveat. Abnormal seismic activity halted Garpenberg production from mid-March 2026, cutting into Boliden's Q1 zinc concentrate output. The investment decision signals long-term confidence, but European concentrate supply remains tighter than the headline plans suggest.
Why Europe Needed This
Europe lost a large share of its zinc smelting capacity during the 2021–2024 energy crisis. Glencore idled Portovesme in Italy, Nyrstar curtailed Auby in France and repeatedly flexed output at Budel in the Netherlands, and treatment charges collapsed to levels that made many plants unprofitable. Nearly a third of Europe's base metal smelting capacity has been closed or curtailed over the past decade.
The result showed up in prices. Rotterdam special high grade (SHG) zinc premiums have been running at $220–260 per tonne — roughly double their historical norm — and LME zinc has traded well above $3,000 through the first half of 2026 on critically low Western inventories. We covered the global stock squeeze in detail in our earlier report; Odda is the first meaningful European supply response to it.
What This Means for Zinc Die Casting Buyers
Zamak alloy producers in Europe buy SHG zinc at LME price plus the regional premium. More refined zinc produced inside Europe reduces the region's import dependence and, over time, should compress that premium. Buyers running European zinc die casting programs can reasonably expect some premium relief as Odda approaches full output — but not before late 2026 at the earliest, given the ramp-up pace and the Garpenberg disruption.
Three points worth building into 2026–2027 procurement planning:
Premium relief will lag the headlines. Capacity announcements move sentiment; physical premiums only move when tonnes actually reach Antwerp and Rotterdam warehouses. Watch Boliden's quarterly Odda production figures, not the press releases.
The LME base price is a separate question. Odda's 150,000 extra tonnes help Europe specifically. Global balance still depends on Chinese exports and mine restarts elsewhere, so contract structures should keep LME-linked pricing clauses in place.
Regional sourcing spreads are widening. With European supply recovering slowly and Asian supply ample, the cost gap between sourcing Zamak die cast parts from Asia versus Europe remains significant in 2026. For OEMs, qualifying suppliers across both regions is the most direct hedge against a premium environment that is improving but far from normalized.
Sources
- Boliden — Annual and Sustainability Report 2025
- MarketScreener — Boliden Q1 2026 Interim Report Coverage
- The Metalnomist — Boliden Garpenberg Zinc Mine Investment Strengthens Long-Term European Zinc Supply (May 2026)
- Mining Technology — Boliden Inaugurates Expanded Odda Zinc Smelter
- Trafigura / EIT RawMaterials — Europe's Smelters: The Strategic Assets We Cannot Afford to Lose (May 2026)
- Argus Media — Backwardation Slows 2026 Zinc Contract Negotiations
