Aluminium plays a vital role in global industry, yet Europe’s aluminium sector faces significant challenges that threaten its competitiveness. Once a global leader, the region now produces less than 1 million tonnes of primary aluminium annually, less than 15% of its needs, while global production has surged past 70 million tonnes, led by China. This decline is largely driven by high energy costs, trade imbalances, and the absence of a coherent strategic industrial policy.
There is a growing recognition of a disconnect between existing policies and the needs of small and medium-sized enterprises (SMEs), which make up 90% of the sector’s workforce and generate 75% of its turnover. One persistent issue is the import duty on raw aluminium, which has long raised costs for downstream manufacturers and contributed to nearly €20 billion in lost competitiveness.
Another key challenge is the transition to secondary aluminium. Recycling requires only 5% of the energy needed to produce primary aluminium, making it a critical part of sustainable and energy-efficient production. With around 75% of all aluminium ever produced still in use, the material is ideally suited for a circular economy.
Carbon pricing mechanisms, such as the Carbon Border Adjustment Mechanism (CBAM), aimed at reducing carbon emissions, have also been criticised for increasing costs for aluminium users without meaningfully improving competitiveness or accelerating decarbonisation. In contrast, approaches like the U.S. Inflation Reduction Act strike a more effective balance between environmental goals and industrial support. 
To ensure a viable future for aluminium production in Europe, a bold and coordinated industrial strategy is essential, one that supports SMEs, eliminates counterproductive import duties, invests in green technologies, and fosters innovation. A renewed focus on sustainability, competitiveness, and technological leadership is key to revitalising the aluminium industry across the continent.
Source: Glass Balkan
