Industry associations’ call to include aluminium in the EU’s Strategic Raw Materials List

European Aluminium, in collaboration with 11 other industry associations representing the raw materials, aerospace & defence, and clean tech sectors, has joined forces to advocate for the formal recognition of aluminium's strategic significance. The shared objective is to secure the inclusion of aluminium in the Strategic Raw Materials list of the EU’s Critical Raw Materials Act (CRMA).

The CRMA signifies a pivotal step toward recognizing the need for a comprehensive approach to safeguard Europe's strategic resilience and promote sustainable growth. It identifies materials of paramount importance to the twin transitions (Green and Digital) and the defence sectors, taking into account projected global supply/demand imbalances.

The associations have jointly sent a letter addressed to Members of the European Parliament on 4 September, 2023. The key recommendations in the position paper are:

1. Inclusion of aluminium as a strategic raw material:

• Aluminium should be formally added to the list of 'Strategic Raw Materials' to support sustainable and resilient aluminium production within Europe.
• Authoritative studies, including the Impact Assessment and JRC Foresight Report, underscore the strategic significance of aluminium.
• The surging demand for aluminium, driven by diverse industries, underscores the necessity of securing a stable supply to prevent import dependencies.
• It is imperative to acknowledge that over two-thirds of global aluminium production occurs in non-market economies, exposing Europe to the risk of supply disruptions due to political interventions.
• The inflow of aluminium imports contributes to higher carbon leakage, which runs counter to the objectives of the EU Green Deal.

2. Additional considerations for aluminium:

• An assessment of the risk of carbon leakage and its implications for the European aluminium industry is essential.
• The importance of retaining aluminium scrap within Europe to create strategic material value chains and reduce the carbon footprint should be highlighted.
• Global supply and demand dynamics, particularly the dominance of non-like-minded third countries, such as China, in aluminium production, warrant evaluation.

3. Involvement of industry stakeholders:

• Active engagement of industry stakeholders in the European Critical Raw Materials Board is crucial.
• Leveraging the invaluable expertise of industry representatives to shape pragmatic, effective measures that support economic growth, job creation, and the resilience of raw material supply chains is imperative.
• Addressing potential administrative burdens associated with reporting in a manner that streamlines compliance is essential.

4. Complementarity with net zero industry act:

• Clarifying the complementary nature of the CRMA and the Net Zero Industry Act (NZIA) is essential.
• Ensuring that NZIA supports raw materials covered by the CRMA to prevent an acceleration of raw material dependencies is vital.
• Promoting a comprehensive value chain approach that reduces Europe's material dependencies is of utmost importance.

5. More ambitious circular economy provisions:

• Strengthening the focus on recycling to boost the supply of recycled materials in Europe is critical.
• Drawing inspiration from provisions related to permanent magnets for other material streams should be considered.
• Ensuring transparency in reporting obligations related to circularity is essential.
• Defining the 15 per cent recycling benchmark as specifically covering the "preparation for recycling" stage is necessary.

5. Boost investments with new financing mechanisms:

• Encouraging greater investment in raw materials production and circularity is paramount.
• Fully endorsing the concept of a European Sovereignty Fund to complement existing platforms is crucial.
• Facilitating private investments through State Aid support for projects that contribute to EU sovereignty in raw materials production, supply chain resilience, and circularity is essential.

The ultimate goal is to witness the inclusion of aluminium in the Strategic Raw Materials list of the CRMA. This position paper underscores European Aluminium's support for these key recommendations and emphasizes the importance of policymakers collaborating with industry stakeholders to ensure a prosperous, resilient, and sustainable future for Europe.