Derivatives and Other Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2025

Fair Value Disclosures [Abstract]

Schedule of Detail for Level 1, 2 and 3 Derivatives

The following tables present the detail for Level 1, 2, and 3 derivatives (see additional Level 3 information in further tables below):

	June 30, 2025				December 31, 2024
	Assets		Liabilities		Assets		Liabilities
Level 1 and 2 derivative instruments	$	19	$	51	$	1	$	20
Level 1 derivative instruments (undesignated)		73		—		—		—
Level 3 derivative instruments		40		1,097		24		1,079
Total	$	132	$	1,148	$	25	$	1,099
Less: Current		73		286		25		263
Noncurrent	$	59	$	862	$	—	$	836

	2025						2024
Second quarter ended June 30,	Unrealized loss recognized in Other comprehensive income (loss)			Realized loss reclassified from Accumulated other comprehensive loss to earnings			Unrealized loss recognized in Other comprehensive income (loss)			Realized (loss) gain reclassified from Accumulated other comprehensive loss to earnings
Level 1 and 2 derivative instruments	$	(46	)	$	(2	)	$	(7	)	$	—
Level 3 derivative instruments		(82	)		(78	)		(146	)		(75	)
Noncontrolling and equity interest (Level 2)		—			—			—			1
Total	$	(128	)	$	(80	)	$	(153	)	$	(74	)

For the second quarter of 2025, the realized loss of $2 on Level 1 and 2 cash flow hedges was recognized in Cost of goods sold. For the second quarter of 2024, the realized gains and losses on Level 1 and 2 cash flow hedges were immaterial.

	2025						2024
Six months ended June 30,	Unrealized loss recognized in Other comprehensive income (loss)			Realized loss reclassified from Accumulated other comprehensive loss to earnings			Unrealized loss recognized in Other comprehensive income (loss)			Realized gain (loss) reclassified from Accumulated other comprehensive loss to earnings
Level 1 and 2 derivative instruments	$	(22	)	$	(4	)	$	(10	)	$	4
Level 3 derivative instruments		(191	)		(171	)		(26	)		(132	)
Noncontrolling and equity interest (Level 2)		—			—			—			1
Total	$	(213	)	$	(175	)	$	(36	)	$	(127	)

Schedule of Outstanding Quantities of Derivative Instruments

The following table presents the outstanding quantities of derivative instruments classified as Level 1 or Level 2:

	Classification	June 30, 2025		June 30, 2024
Aluminum (in kmt)	Commodity buy forwards		160		133
Aluminum (in kmt)	Commodity sell forwards		575		80
Foreign currency (in millions of euro)	Foreign exchange buy forwards		176		61
Foreign currency (in millions of euro)	Foreign exchange sell forwards		10		16
Foreign currency (in millions of euro) (undesignated)	Foreign exchange buy forwards		821		—
Foreign currency (in millions of euro) (undesignated)	Foreign exchange sell forwards		32		—
Foreign currency (in millions of Norwegian krone)	Foreign exchange buy forwards		8		85
Foreign currency (in millions of Brazilian real)	Foreign exchange buy forwards		107		351
Foreign currency (in millions of Australian dollar)	Foreign exchange buy forwards		821		—
Foreign currency (in millions of Canadian dollar)	Foreign exchange buy forwards		—		22
Natural gas (in millions of megawatt hours)	Commodity buy forwards		6		—
Electricity (in millions of megawatt hours)	Commodity buy forwards		6		—

Schedule of Quantitative Information for Level 3 Derivative Contracts

The following table presents quantitative information related to the significant unobservable inputs described above for Level 3 derivative instruments (megawatt hours in MWh; megawatts in MW):

	June 30, 2025		Unobservable Input	Unobservable Input Range
Asset Derivatives
Financial contract (undesignated)	$	31	Interrelationship of forward energy price, LME forward price and the Consumer Price Index	Electricity (per MWh)	2025: $73.11 2025: $38.35
				LME (per mt)	2025: $2,598
					2025: $2,605
Financial contract (undesignated)(1)		9	Interrelationship of forward energy price and the contract price	Electricity (per MWh)	2025: $6.86 2028: $40.98
			MW of renewable energy produced (per month)	Electricity	2025: 31 MW 2028: 84 MW
Power contract		—	MWh of energy needed to produce the forecasted mt of aluminum	LME (per mt)	2025: $2,598 2025: $2,600
				Midwest premium (per pound)	2025: $0.7000 2025: $0.7000
				Electricity	Rate of 2 million MWh per year
Total Asset Derivatives	$	40
Liability Derivatives
Power contract	$	128	MWh of energy needed to produce the forecasted mt of aluminum	LME (per mt)	2025: $2,598 2027: $2,655
				Electricity	Rate of 4 million MWh per year
Power contracts		969	MWh of energy needed to produce the forecasted mt of aluminum	LME (per mt)	2025: $2,598 2029: $2,701 2036: $2,888
				Midwest premium (per pound)	2025: $0.7000 2029: $0.7000 2036: $0.7000
				Electricity	Rate of 18 million MWh per year
Power contract (undesignated)		—	Estimated spread between the 30-year debt yield of Alcoa and the counterparty	Credit spread	1.21%: 30-year debt yield spread 7.02%: Alcoa (estimated) 5.81%: counterparty
Total Liability Derivatives	$	1,097

(1)Increases in the power market or in renewable energy production would result in a higher fair value measurement of the derivative asset or a lower fair value measurement of the derivative liability.

Schedule of Fair Values of Level 3 Derivative Instruments Recorded as Assets and Liabilities

The fair values of Level 3 derivative instruments recorded in the accompanying Consolidated Balance Sheet were as follows:

Asset Derivatives	June 30, 2025		December 31, 2024
Derivatives not designated as hedging instruments:
Current—financial contract	$	35	$	24
Noncurrent—financial contract		5		—
Total derivatives not designated as hedging instruments	$	40	$	24
Total Asset Derivatives	$	40	$	24
Liability Derivatives
Derivatives designated as hedging instruments:
Current—power contracts	$	264	$	251
Noncurrent—power contracts		833		826
Total derivatives designated as hedging instruments	$	1,097	$	1,077
Derivatives not designated as hedging instruments:
Current—embedded credit derivative	$	—	$	1
Noncurrent—embedded credit derivative		—		1
Total derivatives not designated as hedging instruments	$	—	$	2
Total Liability Derivatives	$	1,097	$	1,079

Schedule of Reconciliation of Activity for Derivative Contracts

The following tables present the reconciliation of activity for Level 3 derivative instruments:

	Assets
Second quarter ended June 30, 2025	Financial contracts
April 1, 2025	$	30
Total gains or losses included in:
Other income, net (unrealized/realized)		34
Settlements and other		(24	)
June 30, 2025	$	40
Change in unrealized gains or losses included in earnings    for derivative instruments held at June 30, 2025:
Other income, net	$	34

	Liabilities
Second quarter ended June 30, 2025	Power contracts			Embedded credit derivative
April 1, 2025	$	1,093		$	3
Total gains or losses included in:
Sales (realized)		(78	)		—
Other income, net (unrealized/realized)		—			(3	)
Other comprehensive loss (unrealized)		82			—
June 30, 2025	$	1,097		$	—
Change in unrealized gains or losses included in earnings    for derivative instruments held at June 30, 2025:
Other income, net	$	—		$	(3	)

	Assets
Six months ended June 30, 2025	Financial contracts
January 1, 2025	$	24
Total gains or losses included in:
Other income, net (unrealized/realized)		42
Settlements and other		(26	)
June 30, 2025	$	40
Change in unrealized gains or losses included in earnings    for derivative instruments held at June 30, 2025:
Other income, net	$	42

	Liabilities
Six months ended June 30, 2025	Power contracts			Embedded credit derivative
January 1, 2025	$	1,077		$	2
Total gains or losses included in:
Sales (realized)		(171	)		—
Other income, net (unrealized/realized)		—			(2	)
Other comprehensive loss (unrealized)		191			—
June 30, 2025	$	1,097		$	—
Change in unrealized gains or losses included in earnings    for derivative instruments held at June 30, 2025:
Other income, net	$	—		$	(2	)

Schedule of Carrying Values and Fair Values of Other Financial Instruments

The carrying values and fair values of Alcoa Corporation’s other financial instruments were as follows:

	June 30, 2025				December 31, 2024
	Carrying value		Fair value		Carrying value		Fair value
Cash and cash equivalents	$	1,514	$	1,514	$	1,138	$	1,138
Restricted cash		88		88		96		96
Short-term borrowings		8		8		50		50
Long-term debt due within one year		75		75		75		75
Long-term debt, less amount due within one year		2,574		2,644		2,470		2,499