Alcoa (ASX:AAI) entered into a joint venture with Ignis Equity Holdings, the majority shareholder in Spanish integrated energy company Ignis Group, to restart the San Ciprian smelter, according to a Tuesday joint statement.

Alcoa owns 75% of the joint venture, while Ignis EQT holds the remaining 25%. The companies contributed $81 million and $27 million, respectively, to form the JV and fund the operations, per the statement. Alcoa may fund up to a further $108 million if needed.

The San Ciprian smelter was paused in 2021 amid high energy costs.