Europe is shifting its approach to copper, aluminium, zinc, nickel, lithium, rare earths and other critical raw materials toward industrial delivery. The focus is on mining, refining, smelting and recycling capacity rather than political recognition of metals as an industrial sector. Evangelos Mytilineos, executive chairman of METLEN Energy & Metals, raised the issue as he completed two terms as president of the industry association formerly known as Eurometaux and renamed European Metals in 2026. Inge Hofkens, chief operating officer for multimetal recycling at Aurubis, took over as president on July 1, 2026.
Europe’s experience with weak industrial competitiveness has been linked to energy costs during the disruption of Russian gas supplies. Around half of European primary aluminium capacity was curtailed or shut down, with more than 900,000 tonnes of production reduced or halted. Electricity costs for some producers increased by several hundred per cent before wholesale energy markets stabilised. Industrial gas and electricity prices remain significantly higher in Europe than in many competing economies for energy-intensive sectors such as aluminium, copper and zinc.
Critical Raw Materials Act sets 2030 targets
The EU’s Critical Raw Materials Act, which entered into force in May 2024, sets 2030 targets for domestic supply. The EU aims to extract 10% of annual strategic raw-material consumption, process 40% and obtain 25% from recycling. The legislation also limits concentration risk by requiring that no more than 65% of annual consumption of a strategic raw material at a relevant processing stage comes from a single third country.
The European Commission selected 47 Strategic Projects inside the EU and another 13 outside the bloc in 2025. The selections cover mining, processing, refining, recycling and substitution. A second selection followed in 2026. The measures are supported by the Clean Industrial Deal, Steel and Metals Action Plan, Affordable Energy Action Plan, RESOURCEEU and the proposed Industrial Accelerator Act.
Project designation under the framework does not by itself make investments commercially viable. A strategic mine requires financing, infrastructure, water management, environmental approvals and customers. A refinery needs competitive energy and reliable feedstock. A recycling plant needs access to scrap and long-term buyers.
METLEN links bauxite mining with alumina and gallium
METLEN’s programme in Greece is presented as an example of connecting policy instruments at project level. The company is developing a €295.5 million project covering bauxite mining, alumina refining and gallium production. It targets annual alumina capacity of 1.265 million tonnes and supports around 2 million tonnes of bauxite production annually.
The programme also aims to establish gallium capacity of 50 tonnes per year. It is designed to use existing industrial, energy and port infrastructure while combining large-scale alumina production with gallium output. Gallium is described as a strategic material used in semiconductors, telecommunications, renewable-energy technologies and defence.
On July 29, 2026, METLEN announced a long-term agreement covering approximately 25% of planned gallium output with a US technology customer. The agreement is described as providing additional commercial support for the project.
Slovalco plans restart of curtailed aluminium capacity
Europe’s critical-metals challenge includes preserving existing production alongside new projects. In Slovakia, Slovalco plans to invest €100 million to restart 75,000 tonnes of curtailed annual aluminium capacity and support more than 200 jobs. Production is expected to resume in the fourth quarter of 2026.
The restart is subject to European Commission approval of Slovakia’s revised compensation scheme for indirect carbon costs. The situation reflects how carbon pricing can affect industrial competitiveness when low-carbon technologies and electricity are not yet available at affordable levels compared with international competitors.
Aurubis expands complex recycling capacity
Recycling is described as a strategic component of Europe’s metals approach alongside primary supply. Aurubis has invested €190 million in its Complex Recycling Hamburg facility to process increasingly complex recycling materials and recover copper along with other minor and precious metals. The company also secured a €200 million European Investment Bank loan in 2025 for recycling and copper-production investments.
The material recovery limits are linked to how long metals remain embedded in buildings, vehicles and infrastructure after they enter use. Recycling cannot fully replace primary mining because much of the metal already in circulation remains locked up for decades. The EU objective is framed as a system where primary and secondary materials reinforce each other.
The EU is targeting a 24% circular-material-use rate by 2030. It is also considering measures intended to retain more strategic scrap within Europe and stimulate demand for recycled materials.
Energy affordability remains central for metals plants
Across mining, refining, smelting and recycling, energy is identified as one of Europe’s biggest challenges for industrial operations. The Affordable Energy Action Plan promotes power-purchase agreements, lower energy taxes and levies, improved network tariffs and faster renewable deployment. The European Investment Bank has also established a €500 million counter-guarantee facility to support industrial PPAs.
The availability of renewable electricity contracts does not automatically provide continuous and predictable power required by energy-intensive plants. Metals producers are described as needing firm, affordable and reliable electricity that may combine renewable PPAs with storage, grid capacity, interconnection and balancing mechanisms. Without such arrangements, projects can be strategically important but difficult to operate commercially.
CBAM enters definitive phase alongside ETS phase-out
The Carbon Border Adjustment Mechanism (CBAM) entered its definitive phase on January 1, 2026. It covers imports including iron and steel, aluminium, cement, fertilisers, hydrogen and electricity. CBAM is designed to reduce carbon leakage as free allocation under the EU Emissions Trading System phases out between 2026 and 2034.
Carbon protection for the EU market does not automatically address competitiveness challenges faced by exporters outside the bloc. Producers selling aluminium, steel and other materials outside the EU can still face competitors operating under lower carbon and energy costs. European industrial policy is therefore described as increasingly needing carbon protection alongside competitive energy, financing and demand-side support.
Measuring progress through operational output
The EU now has a stronger framework for critical raw materials than it did only a few years earlier. The assessment focus extends beyond the number of strategies or funding schemes receiving strategic status. It includes whether Europe can keep smelters operating while restarting curtailed capacity.
The framework also involves building new refineries, expanding recycling capacity and developing responsible domestic mining projects. Meeting these requirements depends on competitive electricity availability, accessible finance and faster but credible permitting alongside effective carbon policy. Customers willing to pay for secure European supply are identified as part of the conditions for operational delivery.
The next stage is described in terms of output on the ground: tonnes of copper, aluminium, zinc, nickel, lithium and other critical materials extracted, processed, refined and recycled within resilient European value chains.