Pax Silica Initiative Gains Norway as Western Supply Chains Tighten Around AI and Semiconductors

Pax silica

Pax Silica initiative membership has expanded with Norway joining the US-led framework for artificial intelligence, semiconductors and critical raw materials security. The move adds a European partner with low-carbon power, industrial metals capacity and growing critical minerals relevance.

The Pax Silica initiative has become part of Washington’s effort to reduce dependence on China in critical minerals, semiconductor supply chains and AI infrastructure. Norway’s accession strengthens the coalition’s European minerals, energy and capital base.

The Pax Silica initiative now includes countries with complementary strengths in mining, processing, technology, energy, finance and advanced manufacturing. That mix is important because strategic supply chains increasingly require more than mineral deposits alone.

Norway’s ambassador to the US, Anniken Huitfeldt, is expected to sign the initiative, giving Norway a formal role in a US-backed economic security framework.

Norway Adds Low-Carbon Metals, Capital and Rare Earth Potential

Norway brings several advantages to the coalition. The country has a long-established aluminium and ferro-alloys industry, access to low-carbon power and a growing policy focus on critical raw materials.

Its role has also become more relevant because of work on the Fen rare earth deposit in southern Norway. Rare earths are central to permanent magnets, defence systems, electric motors, wind turbines and advanced electronics.

Norway’s sovereign wealth fund also gives the country strategic capital relevance. In critical minerals, financing capacity can be as important as geology because new projects require long development timelines, technical qualification and patient capital.

Norway said Pax Silica could give domestic companies stronger access to advanced technology value chains. This matters for suppliers that want to connect local raw materials, clean power and industrial capabilities with AI, semiconductor and defence-linked markets.

The country is also aligning its wider policy with key partners through the EU Critical Raw Materials Act and European Chips Act. That creates a bridge between European industrial policy and the US-led supply-chain framework.

Supply-Chain Blocs Reshape Mineral Investment Logic

The industrial significance of Pax Silica lies less in immediate metal flows and more in policy direction. Western governments are building supply-chain blocs that link raw materials, processing, capital and end-use manufacturing across allied jurisdictions.

This could affect future investment decisions in rare earths, aluminium, silicon-related materials, battery metals and other inputs tied to semiconductors and AI infrastructure.

The framework also reflects a shift in how critical minerals projects are evaluated. Access to technology partners, downstream customers, public financing and geopolitical alignment may increasingly determine which projects advance.

For Norway, membership strengthens its position in the emerging western critical minerals architecture. For the wider market, it reinforces the idea that supply security is becoming a structured policy goal rather than a simple procurement choice.

This trend will matter for metals producers, refiners, traders and manufacturers. Companies that can operate inside trusted supply-chain blocs may gain better access to capital, offtake support and advanced technology customers.

The Metalnomist Commentary

Norway’s entry into Pax Silica shows that critical minerals strategy is now merging with AI, semiconductor and economic security policy. The next phase of mineral competition will be defined by blocs that combine geology, capital, clean energy and downstream demand.

Nyrstar Australian Smelters Face Uncertain Future Without New Funding

Nyrstar

Nyrstar Australian smelters face an uncertain future as the company reviews possible closures or output curtailments at its Port Pirie lead smelter and Hobart zinc smelter. The review comes after interim government rescue funding expired without a second phase being agreed.

Nyrstar Australian smelters received A$135mn in interim support in August last year. The funding was designed to keep the 160,000 t/yr Port Pirie lead smelter in South Australia and the 280,000 t/yr Hobart zinc smelter in Tasmania operating while longer-term solutions were assessed.

Nyrstar Australian smelters are strategically important because they preserve domestic processing capability for base metals and potential critical minerals. But the facilities remain economically challenged by weak commodity pricing, high energy costs and the need for capital investment.

The company, owned by Trafigura, said it is now exploring all options for the two assets. No final decision has been made on closures or production cuts.

Port Pirie and Hobart Test Australia’s Industrial Policy

The Port Pirie and Hobart smelters sit at the centre of Australia’s debate over whether strategic processing capacity should be preserved through public support. Both assets are partway through two-year feasibility studies to diversify output into critical minerals such as bismuth and tellurium.

This diversification is important because traditional lead and zinc smelting margins have been under pressure. Adding critical minerals could improve the strategic value of the facilities and create new revenue streams.

Port Pirie has already started moving in that direction. The first shipment of antimony from a pilot plant was exported in February under the first-phase funding agreement.

Nyrstar said the Port Pirie pilot plant could produce 2,000 t/yr of antimony by the end of this year. That would be meaningful because antimony is increasingly viewed as a strategic metal for defence, flame retardants, batteries and industrial alloys.

Hobart has already faced production cuts during weaker zinc market conditions. That history shows how exposed the site remains to zinc prices, energy costs and operating margins.

Without a second funding phase, Nyrstar may cut capital expenditure and operating costs as part of the review. That could delay diversification plans and weaken Australia’s ability to preserve downstream metal processing capacity.

Critical Minerals Could Decide Smelter Value

The future of the two smelters may depend on whether they can become more than conventional lead and zinc assets. Processing critical minerals could give them a stronger role in Australia’s industrial strategy.

Australia’s Future Made in Australia policy aims to retain industrial capability and use renewable energy to support low-carbon exports, including metals. Smelters such as Port Pirie and Hobart fit that policy direction if they can become competitive and strategically relevant.

The challenge is cost. Existing smelters need reliable power, capital upgrades and market support to compete against lower-cost global processors.

Recent government support for aluminium and copper processors shows that Canberra is willing to intervene when strategic industrial assets face closure. But each case still needs a credible long-term pathway.

For Nyrstar, that pathway may involve antimony, bismuth, tellurium and other by-product metals. These materials can improve the value of complex smelting operations if they are recovered efficiently and sold into secure supply chains.

For Australia, the decision is broader than one company. Losing smelting capacity would weaken domestic processing depth at a time when governments are trying to reduce dependence on concentrated foreign refining systems.

The Metalnomist Commentary

Nyrstar’s Australian smelter review shows that critical minerals policy must extend beyond mining into processing assets that already exist. The key question is whether Australia can turn legacy smelters into strategic by-product platforms before high energy costs force permanent closures.

France Fossil Fuel Roadmap Sets Clear Timetable for Energy Transition

Fossil fuel roadmap

France fossil fuel roadmap marks an important step in turning climate targets into a structured energy transition plan. The roadmap does not introduce new targets, but it brings France’s energy policies, electrification strategy and climate goals into one document.

France fossil fuel roadmap is significant because it gives a clear schedule for reducing fossil fuel dependence. France aims to cut fossil fuels from around 60% of final energy consumption in 2023 to 40% in 2030 and 30% in 2035.

France fossil fuel roadmap also sets long-term phase-out dates for coal, oil and natural gas. The government plans to phase out coal by 2030, oil by 2045 and natural gas by 2050, while targeting net zero emissions by mid-century.

The roadmap matters beyond France. It gives other governments a practical example of how fossil fuel transition planning can connect emissions targets, energy security, electrification and industrial strategy.

Electrification Becomes the Core of Fossil Fuel Reduction

France’s roadmap links fossil fuel reduction directly to electrification. The country’s new electrification plan, released in April, now sits alongside its national low-carbon strategy and wider climate targets.

This connection is important because fossil fuel phase-out cannot happen only through policy declarations. It requires more electricity, cleaner generation, stronger grids, electric heating, electric transport, industrial efficiency and lower-carbon manufacturing.

France also has an energy security reason to move faster. More than 95% of fossil fuels burned in the country are imported, exposing households and industry to external price shocks, shipping risks and geopolitical disruption.

Reducing imported fossil fuel use therefore serves two goals. It lowers emissions and reduces exposure to volatile global energy markets.

The roadmap reiterates France’s target to cut gross greenhouse gas emissions by 50% by 2030 compared with 1990 levels. It also supports the longer-term objective of net zero emissions in 2050.

France’s remaining two coal-fired power plants are scheduled to close or be converted by next year. This makes coal the easiest part of the transition, while oil and natural gas will require deeper changes across transport, buildings and industry.

For metals and materials markets, the roadmap points to rising demand for the physical infrastructure behind electrification. Copper, aluminium, electrical steel, transformers, batteries, rare earth magnets, grid equipment and power electronics will all become more important as France cuts fossil fuel use.

The policy also strengthens the case for clean energy investment. A clearer timetable can help utilities, manufacturers, grid operators and industrial users plan capital spending around future energy demand.

Fossil Fuel Transition Planning Gains Global Momentum

Think tanks welcomed the French roadmap because few countries address coal, oil and gas together under one transition framework. They noted that France did not raise ambition, but still provided a useful model by setting timelines and aligning policies.

This matters because global climate diplomacy is moving from broad pledges toward implementation. The first global stocktake agreed at Cop 28 called for a transition away from fossil fuels in energy systems, but many countries still lack detailed national plans.

France’s roadmap gives that commitment a national structure. It shows how governments can translate climate summit language into domestic policy sequencing.

The document also creates pressure on fossil fuel-producing countries. If demand for fossil fuels declines over the coming decades, producer economies will need diversification plans, new industries and alternative sources of public revenue.

Colombia’s draft fossil fuel transition roadmap shows that this discussion is widening. The country aims to cut primary fossil fuel demand by 90% over 2026-50 while expanding energy access and managing dependence on oil and coal exports.

The EU is also moving in the same direction, even if its language focuses more on emissions reduction than explicit fossil fuel phase-out. The bloc targets net zero emissions by 2050, a 55% emissions reduction by 2030 and a 90% reduction by 2040 compared with 1990 levels.

The practical effect is similar. Deep emissions cuts cannot happen without a major reduction in fossil fuel use.

For industry, this creates a long-term signal. Companies should expect more electrification, stronger carbon rules, higher clean-energy investment and greater pressure to reduce fossil fuel exposure in operations and supply chains.

The strategic issue is execution. Roadmaps help, but governments still need permitting reform, grid investment, clean power capacity, financing, industrial incentives and raw material supply security.

The Metalnomist Commentary

France’s roadmap shows that fossil fuel transition is becoming an infrastructure plan, not just a climate slogan. The industrial winners will be countries that connect phase-out timelines with grids, clean power, critical minerals and manufacturing capacity.

Hillside Aluminium Smelter Future Hinges on South32 Eskom Power Deal

Hillside Aluminium

Hillside aluminium smelter operations beyond 2031 will depend on a new long-term power agreement between South32 and South African utility Eskom. The companies are negotiating a replacement contract for the KwaZulu-Natal smelter before its current discounted electricity supply arrangement expires.

The Hillside aluminium smelter is one of South Africa’s most important energy-intensive industrial assets. Securing competitively priced power is essential because aluminium smelting depends on stable, large-scale and affordable electricity.

South32 and Eskom have created a working group to explore ways to bring competitively priced renewable energy into South Africa’s national grid. The goal is to support Hillside’s future power needs while also benefiting Eskom’s wider customer base.

The talks come shortly after South32 moved its Mozal aluminium smelter in Mozambique into care and maintenance after failing to secure a new electricity supply agreement. That decision highlights the strategic risk facing smelters when power contracts expire without a commercially viable replacement.

Power Security Becomes the Main Aluminium Constraint

Electricity is the defining cost factor for primary aluminium. Smelters need continuous power, and even modest changes in tariffs can determine whether production remains competitive.

The Hillside aluminium smelter currently benefits from a discounted power contract that runs until 2031. A new agreement would secure the plant’s operating future beyond that date and reduce uncertainty for workers, suppliers and downstream customers.

South32’s experience at Mozal shows what is at stake. The Mozambican smelter was moved into care and maintenance after its electricity contract expired at the end of March and no new agreement was reached.

That outcome gives urgency to the Hillside negotiations. Without a competitive long-term power solution, South32 could face difficult decisions about one of its key southern African aluminium assets.

For Eskom, the talks also carry wider industrial policy significance. South Africa needs to preserve energy-intensive manufacturing while managing grid constraints, decarbonisation pressure and the transition toward cleaner power.

Renewable Power Could Support Low-Carbon Aluminium

The working group’s focus on renewable energy shows how aluminium supply is becoming tied to decarbonisation. Buyers increasingly want lower-carbon aluminium, especially in automotive, packaging, construction and industrial applications.

A renewable-linked power solution could improve Hillside’s long-term competitiveness. It would help South32 reduce emissions exposure while keeping the smelter connected to South Africa’s industrial base.

However, the challenge is execution. Renewable power must be competitively priced, reliable and integrated into the national grid in a way that supports continuous smelter operations.

The agreement could also set a precedent for other energy-intensive industries in South Africa. If Eskom and South32 can structure a viable low-carbon power model, it may help attract or retain industrial investment in metals, chemicals and manufacturing.

For the aluminium market, the message is clear. Future smelting capacity will depend less on ore or alumina access alone and more on long-term power security, grid reliability and carbon intensity.

The Metalnomist Commentary

The Hillside power talks show that aluminium competitiveness is now an energy strategy question. South32 and Eskom must prove that South Africa can keep heavy industry alive while moving toward lower-carbon electricity.

EGA Aluminium Recycling Strategy Expands With Eco Green Acquisition

EGA Aluminium Recycling

EGA aluminium recycling strategy has advanced with Emirates Global Aluminium agreeing to acquire an 80% stake in Italian aluminium recycler Eco Green. The deal strengthens EGA’s recycled aluminium footprint in Europe and adds another foreign recycling platform to its growing international network.

Eco Green operates near Verona in northeast Italy. The company collects, sorts and distributes around 23,000 t/yr of aluminium scrap, while its nearby casting facility produces more than 20,000 t/yr of secondary aluminium sows.

EGA aluminium recycling capacity will expand further because Eco Green is planning an additional 15,000 t/yr of recycled aluminium capacity at its casting facility. This gives EGA both existing production and near-term growth potential in the European secondary aluminium market.

The acquisition shows that EGA is moving beyond its traditional UAE-based integrated aluminium model. Instead of relying only on primary metal expansion, the company is buying recycling assets closer to scrap sources and downstream customers.

Eco Green Adds European Scrap and Casting Capacity

Eco Green gives EGA direct access to Italian aluminium scrap collection, sorting and secondary casting capacity. This is strategically important because scrap access is becoming a core competitive advantage in aluminium.

Secondary aluminium requires far less energy than primary aluminium. It also helps customers reduce embedded carbon in automotive, packaging, construction and industrial products.

The Verona-area location gives Eco Green access to Europe’s mature industrial scrap flows. Italy is one of Europe’s major manufacturing centres, which supports steady availability of post-industrial aluminium scrap.

The casting facility also gives EGA a route to convert collected scrap into secondary aluminium sows. This strengthens value capture because the business is not limited to scrap trading or sorting.

The planned 15,000 t/yr expansion will deepen that position. It should allow Eco Green to process more scrap internally and support EGA’s broader recycled aluminium supply targets.

EGA Builds a Global Secondary Aluminium Platform

The Eco Green deal follows EGA’s acquisition of German recycling company Leichtmetalle in 2024. EGA later announced an expansion of that facility, which will increase capacity more than six-fold.

EGA also bought a majority stake in US secondary aluminium smelter Spectro Alloys in 2024. Since then, it has announced two expansions that will lift Spectro’s total capacity to more than 200,000 t/yr of secondary aluminium ingots and billets, from 110,000 t/yr previously.

Following the Eco Green acquisition, EGA aluminium recycling capacity will total more than 400,000 t/yr across the UAE, Europe and the US. A further 200,000 t/yr is under development.

This creates a more diversified aluminium business. EGA can still rely on its primary aluminium base in the UAE, but recycling gives it lower-carbon growth in key consuming regions.

The strategy also responds to customer demand. Buyers increasingly want aluminium with lower carbon intensity, traceable scrap inputs and regional supply security.

For EGA, recycled aluminium acquisitions offer faster market entry than building new primary smelting capacity. They also reduce exposure to energy-intensive growth and place the company closer to circular aluminium supply chains.

The Metalnomist Commentary

EGA’s Eco Green acquisition confirms that global aluminium competition is shifting toward scrap control and secondary capacity. The winners in low-carbon aluminium will not only own smelters; they will own regional recycling networks close to customers.

Indian Stainless Seamless Tube Exports Set to Stay Resilient in EU Market

Stainless Tube

Indian stainless seamless tube exports to Europe are expected to remain resilient despite tighter EU safeguard quotas and rising carbon compliance costs. European buyers continue to depend on imported material in product categories where regional stainless seamless tube capacity remains insufficient.

Indian stainless seamless tube exports are being tested by two forces at once. Europe is tightening trade protection and carbon policy, while India is expanding production capacity to serve both export and domestic industrial demand.

The result is not a simple import slowdown. Instead, the European market is likely to become more selective, with buyers continuing to source from India where local supply cannot meet technical, volume or cost requirements.

Speakers at SMR’s Stainless Steel Tube and Pipe Market Insights Day in Dusseldorf said EU safeguard quotas and the carbon border adjustment mechanism will raise costs. However, they said these measures will not remove Europe’s structural need for non-EU seamless tube supply.

EU Supply Gaps Keep Indian Tube Imports Viable

European stainless seamless tube buyers are not abandoning overseas suppliers because domestic mills cannot fully cover demand across all product segments. This is especially true in applications requiring specific sizes, grades, delivery windows or fabrication-linked supply.

Venus Europe managing director Stefan Muller-Bernhardt said price increases in Europe are being driven more by policy measures and cost inflation than by genuine shortages caused by lower imports. This distinction matters because trade measures may raise landed costs without creating enough domestic capacity to replace imports.

Ratnamani Metals and Tubes stainless steel division head MS Randhawa said imports will remain viable where demand exceeds regional supply. Even when buyers face higher tariffs and compliance costs, the need for material can outweigh the added expense.

This is particularly relevant for seamless tubes used in export-oriented fabrication. Products tied to heat exchangers, pressure vessels and engineered systems may still require imported tube input if European supply is limited or too expensive.

CBAM adds another layer of uncertainty. Importers will need to manage emissions reporting, verification and future carbon costs. But the mechanism is unlikely to eliminate Indian stainless seamless tube exports where Europe lacks sufficient domestic alternatives.

Safeguard quotas will have a more direct commercial effect. Tighter quotas can restrict volume flexibility and raise the risk of duty exposure. However, buyers with technical dependence on imports may continue purchasing Indian material even at higher cost.

This creates a more disciplined import market. Indian suppliers that can offer consistent quality, compliance documentation and reliable delivery will be better positioned than low-cost exporters with weaker transparency.

For European buyers, the key issue is not whether imports become more expensive. It is whether domestic producers can replace the material. In many seamless tube categories, the answer remains uncertain.

Indian Capacity Growth and Process Routes Reshape Competition

India’s stainless seamless tube industry is expanding rapidly, but speakers said this should not be viewed only as export pressure on Europe. Indian producers are also adding capacity to serve fast-growing domestic demand.

India’s refining, power, fertiliser, semiconductor, defence and industrial sectors are all increasing stainless seamless tube consumption. These applications require corrosion resistance, pressure integrity and reliable mechanical performance.

India also has low per-capita stainless steel consumption, leaving substantial room for long-term domestic growth. As industrialisation continues, local tube demand should absorb part of the new capacity being added by Indian producers.

Still, exports will remain attractive. Overseas markets often offer larger order volumes, better price realisation and more diversified customer bases. Europe will therefore remain important, even as Indian domestic demand strengthens.

The market is also seeing a technical divide between production routes. Rotary piercing is gaining share because of lower costs and improving process technology. This route is becoming more competitive in mainstream seamless tube applications.

Hot extrusion remains important for more demanding segments. Aerospace, defence, nuclear and nickel alloy applications still require higher-end processing, tighter quality control and stronger technical assurance.

The two production routes are unlikely to converge into one dominant model. Rotary piercing will likely serve broader volume demand, while hot extrusion will remain positioned in premium and technically demanding markets.

This divide matters for Europe. Buyers may use Indian piercing-based supply for standard industrial applications, while relying on hot-extruded material for more critical service conditions.

Indian stainless seamless tube exports will therefore become more segmented. The market will differentiate between commodity-grade volume, engineered stainless products and high-specification alloy tubes.

For Indian producers, the opportunity is clear. Companies that can serve both cost-sensitive mainstream demand and higher-specification industrial applications will be better placed to withstand EU policy pressure.

For Europe, the challenge is also clear. Trade controls and CBAM may protect local producers, but they cannot immediately create missing capacity in specialized seamless tube categories.

The Metalnomist Commentary

The EU’s policy direction will raise the cost of Indian stainless seamless tube exports, but it will not remove Europe’s import dependence. The stronger long-term shift is segmentation: lower-cost piercing will serve volume demand, while hot extrusion will defend premium industrial applications.

CBAM Article 27a Deletion Would Tighten EU Carbon Border Rules

CBAM

CBAM article 27a deletion would make the EU carbon border adjustment mechanism more rigid, predictable and difficult to suspend. The European Parliament’s environment committee is preparing to propose removing the clause that would allow temporary exemptions from CBAM under serious and unforeseen circumstances.

The proposal comes from a draft legal report prepared by Dutch centre-left MEP Mohammed Chahim. It signals that parliament may push for a tougher CBAM framework than some member states or industrial importers would prefer.

CBAM article 27a deletion matters because exemptions could weaken the market signal behind the carbon border system. If importers believe CBAM can be paused during disruption, the mechanism may lose some of its pricing certainty and investment value.

The draft instead proposes a narrower system for exceptional cases linked to prolonged military conflict. In those situations, the European Commission would assess whether affected operators can still comply with CBAM requirements.

This approach keeps the mechanism intact while recognising that war can disrupt reporting, verification, logistics and administrative compliance. It also avoids creating a broad exemption channel that could be used during ordinary market stress.

The proposal shows how CBAM is shifting from launch-stage implementation toward legal hardening. The EU is now debating how much flexibility the system should allow without undermining its role as a carbon-cost equalisation tool.

Parliament Seeks Fewer Exemptions and Rejects Article 6 Credits

The most important legal change is the proposed removal of article 27a. That article would allow goods to be temporarily exempted from CBAM during serious and unforeseen circumstances.

The environment committee draft argues that this flexibility could weaken CBAM’s strength and predictability. Predictability is central to the mechanism because importers, exporters and industrial buyers need to know how carbon costs will apply over time.

A broad exemption article could also create lobbying pressure during periods of high energy prices, trade disruption or geopolitical tension. Once a suspension route exists, affected industries may push to use it whenever CBAM costs become commercially painful.

CBAM article 27a deletion would therefore protect the mechanism from becoming too politically adjustable. That is important as the EU begins phasing down free allowances under the emissions trading system and shifting more carbon-cost exposure toward imports.

The draft does not ignore exceptional disruption entirely. It proposes a replacement article focused on prolonged military conflict and its impact on affected regions.

This is a narrower and more defensible framework. A military conflict can prevent companies from collecting emissions data, meeting verification requirements or maintaining normal trade documentation. But that is different from giving broad exemptions whenever market conditions become difficult.

The draft also proposes removing language that would allow the EU to consider carbon credits issued under Article 6 of the Paris Agreement as part of the carbon price already paid on CBAM-covered goods.

This is strategically significant. Article 6 credits could, in theory, reduce CBAM liabilities if foreign producers claim they have already paid a carbon price through internationally recognised credits. But the draft calls this premature and counterproductive.

The concern is credibility. International carbon credits can vary widely in price, quality and environmental integrity. Allowing them into CBAM too early could weaken the mechanism and create disputes over whether credits represent real emissions reductions.

This is especially important for heavy industry. Steel, aluminium, cement, fertilisers and other CBAM-covered sectors need clear rules on what counts as a paid carbon cost. If low-cost or low-integrity credits reduce CBAM exposure, EU producers may argue that the system fails to protect them from carbon leakage.

By rejecting Article 6 credits, the draft keeps CBAM tied more closely to direct carbon pricing and verifiable emissions. That would make the system stricter, but also simpler for enforcement.

The legal direction is clear. Parliament’s environment committee appears to favour a CBAM model with limited exemptions, cautious treatment of offsets and stronger predictability for industry.

For exporters into the EU, this raises the compliance threshold. They will need credible emissions data, verified reporting and direct carbon-cost evidence rather than relying on broad exemptions or international credit claims.

Sector Expansion and Indirect Emissions Could Widen CBAM’s Industrial Reach

The draft also points toward a broader CBAM after the next review, scheduled by the end of 2027. It says the EU should consider expanding the mechanism’s sectoral scope to additional industries.

The sectors identified include organic chemicals, polymers and scrap materials from pulp, paper and glass. These areas have already been assessed as technically feasible for inclusion by the Commission.

This matters because CBAM currently focuses on a narrower set of carbon-intensive sectors. Expanding into chemicals and polymers would move the mechanism deeper into industrial supply chains and downstream manufacturing.

Organic chemicals and polymers are especially important because they sit inside a wide range of finished goods. If CBAM expands into these materials, the mechanism could affect packaging, automotive parts, consumer goods, industrial components and many other value chains.

Including scrap materials from pulp, paper and glass would also widen the mechanism’s reach into recycling and secondary raw materials. This could create new reporting challenges because scrap flows often involve mixed origins, complex supply chains and variable embedded emissions.

The draft also calls for CBAM to gradually cover indirect emissions in more sectors. Indirect emissions are already included for fertilisers and cement, but not across all covered products.

This could become one of the most important future changes. Indirect emissions reflect the carbon intensity of electricity used in production. For sectors such as aluminium, steel and chemicals, power sourcing can materially change total embedded emissions.

If indirect emissions are added more broadly, exporters using coal-heavy power systems could face higher CBAM costs. Producers using renewable, nuclear or lower-carbon power could gain a competitive advantage.

This would sharpen CBAM’s industrial effect. The mechanism would no longer focus mainly on direct process emissions. It would also reward cleaner electricity systems and penalise high-carbon power inputs.

The draft asks the Commission to present a proposal by the end of 2027 after assessing technical and policy options. This creates a clear timeline for companies to prepare.

For metals producers, the direction is important. Aluminium and ferro-alloy production are highly electricity-intensive. If indirect emissions become more widely included, power procurement, renewable energy contracts and verified electricity data will become central to EU market access.

For chemical and polymer exporters, CBAM expansion could introduce carbon reporting into supply chains that have not yet faced the same level of scrutiny. This may force producers to improve emissions measurement well before formal inclusion.

The parliamentary timeline is also taking shape. The environment committee is expected to consider the proposed changes on 4-5 May and vote on whether to advance them on 6 July.

If approved, an indicative plenary vote is scheduled for 14 September. That vote would formalise the European Parliament’s position before negotiations with EU member states on the final legal text.

The draft follows a compromise proposed by the EU Council presidency, which had already suggested changes to article 27a. This means both parliament and member states are now actively shaping the flexibility, scope and legal strength of CBAM.

The key issue is balance. Industry wants clarity and workable compliance. Policymakers want to preserve the environmental and competitiveness purpose of the system. Exporters want flexibility during disruption. EU producers want strong protection against carbon leakage.

CBAM article 27a deletion sits at the centre of that debate. It would reduce the risk of temporary exemptions weakening the mechanism, but it would also make compliance more demanding during periods of market stress.

For global suppliers, the message is straightforward. CBAM is unlikely to become a soft or easily suspended regime. The EU is moving toward tighter verification, fewer loopholes and possible expansion into more industrial sectors.

The Metalnomist Commentary

CBAM article 27a deletion would make the EU carbon border system more credible, but also less forgiving. The bigger strategic signal is that Brussels is preparing to expand CBAM from a narrow carbon-pricing tool into a wider industrial competitiveness framework.

European Stainless Tube Trade Shifts as Policy, Imports and Data Centres Reshape Demand

European Stainless Steel

European stainless tube trade is entering a more selective phase as producers defend margins through higher-value applications, tighter specifications and regional supply advantages. The market remains stable, but it is no longer driven mainly by volume growth.

European stainless tube trade is being reshaped by three forces at once. Imports continue to pressure commodity and process pipe segments. Policy measures such as CBAM and revised safeguards are changing cost structures. At the same time, automotive exhaust demand is declining as electrification advances.

Speakers at SMR’s Stainless Steel Tube and Pipe Market Insights Day in Dusseldorf said Europe is behaving like a mature and cyclical market. Asia remains the main centre of stainless steel consumption and commodity production, while Europe depends more on technical applications, certification and regulatory positioning.

European stainless tube trade is therefore moving away from simple price competition. Producers are increasingly competing on quality, traceability, sustainability, lead times and the ability to serve complex end uses.

Italy-based Marcegaglia Specialties said traditional sectors such as construction, energy, oil and gas, automotive, water and food processing remain the backbone of demand. However, the next stage of competition will depend more on sustainability and product complexity than on basic market expansion.

CBAM and Import Pressure Are Regionalising Stainless Tube Supply

European stainless tube trade is becoming more regional because policy and geopolitics are increasing the value of local supply. CBAM, revised safeguard measures and wider instability are pushing buyers to look more carefully at origin, emissions, delivery risk and compliance.

European producers already operate inside the EU regulatory framework. This gives them an advantage in some higher-value applications where customers require reliable documentation, stable quality and shorter supply chains.

But the policy environment is not simple. Some industry speakers warned that CBAM could become more protectionist than environmental if it raises costs for European downstream processors without fully addressing import competition.

This concern is especially relevant for stainless tube makers. They buy input material under EU cost structures, but still compete with imported finished or semi-finished products in certain market segments.

OSTP chief executive Andrea Gatti argued that CBAM and revised tariff-rate quotas are creating a difficult environment for downstream processors. He said the measures can raise raw material costs for European producers while leaving import pressure unresolved in some product categories.

One concern is the way carbon steel and stainless steel products remain grouped in some quota categories. This can obscure the real level of import pressure in specific stainless segments.

The issue is most visible in process pipe. Overall import penetration in European welded stainless pipe may look moderate, but import pressure is much stronger in process pipe than in automotive or structural applications.

Some imported process pipe is arriving at prices close to European producers’ raw material costs. This creates a serious margin problem for EU producers, especially when they must meet higher regulatory, labour and energy costs.

Asian imports are particularly competitive in pipe and fittings made to ASTM specifications. Around 15-20% of the European market still requires ASTM-based products, often because older engineering standards and end-user specifications remain in place.

This creates an opening for Asian suppliers. Many have long experience producing ASTM-based products and can compete aggressively in segments where buyers focus mainly on price and basic compliance.

Asian producers are also becoming more capable of supplying European-standard material. However, some barriers remain. Hot-rolled feedstock availability, customer qualification and more complex technical requirements still protect parts of the European market.

CBAM adds another layer of uncertainty. Importers and buyers still lack full visibility on the actual carbon values that overseas suppliers will declare. Some emissions disclosures remain incomplete or unreliable.

This creates pricing uncertainty. If importers use default emissions values, CBAM costs may rise sharply. If suppliers provide certified actual data, costs may be lower. But the market does not yet know which overseas suppliers can verify emissions credibly.

For European producers, this uncertainty is both an opportunity and a risk. It may make some imports less attractive, but it also complicates raw material sourcing and customer negotiations.

The broader result is regionalisation. Buyers are increasingly weighing whether cheaper imported material is worth the compliance, delivery and emissions risk. European producers can benefit if they turn regulation into a trusted supply advantage.

However, they cannot rely on regulation alone. Imports will continue to pressure standard grades and process pipe where price remains decisive. Europe’s defence must therefore come from technical capability, service and qualification depth.

Automotive Decline and Data Centres Redefine Growth Applications

European stainless tube producers also face structural demand change in automotive applications. Exhaust-related stainless tube demand is declining as electric vehicle adoption reduces the long-term need for combustion engine systems.

German tubemaker Schoeller Werk said about 40% of its business is still linked to automotive. Around 95% of that automotive exposure is tied to combustion engine applications.

This creates a clear transition risk. Combustion engine exhaust systems have historically used stainless tube because of heat resistance, corrosion performance and durability. Electric vehicles remove much of that demand.

Industry speakers described this shift as irreversible, even if the speed varies by region. Combustion vehicles may remain relevant for some years, but the structural direction is clear.

Marcegaglia also described the shift away from combustion-engine vehicles as a trend that stainless tube producers must manage. The market cannot assume that traditional automotive exhaust demand will return.

This forces producers to find new growth areas. Data centres emerged as one of the clearest near-term opportunities during the Dusseldorf discussions.

Data centre stainless demand is growing because cooling systems are becoming more important. AI workloads, higher server density and larger hyperscale facilities require more advanced thermal management.

Stainless tubes can be used in cooling circuits, heat exchangers and wider water infrastructure. These applications often require corrosion resistance, reliability and long service life.

Gatti said the strongest opportunity may not only sit in outer water infrastructure. Inner cooling circuits also present growth potential as specifications increasingly exclude carbon steel and favour copper or stainless steel.

Copper’s high price is helping stainless steel compete. In some data centre applications, stainless can win substitution from copper on cost grounds while still meeting performance requirements.

This creates a valuable opening for European producers. Data centres are not only a volume market. They require quality, traceability, reliability and tight specifications, which fit Europe’s competitive strengths.

However, Asian competition remains a threat. If data centre projects are specified to ASTM standards, Asian suppliers may still compete strongly. This means European producers need early involvement in specifications and project qualification.

Other higher-value markets may also support growth. Specialist energy systems, premium process pipe, food processing, water treatment and industrial heat exchangers all require more complex tube products.

The key difference is that these markets reward performance rather than only price. European producers are better positioned when customers value certification, documentation, short lead times, sustainability and technical support.

This is why Europe’s competitive advantage increasingly lies in complexity. Producers cannot win every commodity segment against lower-cost imports. But they can defend and grow in applications where failure risk, qualification standards and technical requirements matter.

The next decade will likely reward producers that invest in advanced materials and difficult applications. This includes higher corrosion resistance, special dimensions, better surface quality, stronger traceability and lower-carbon documentation.

Policy could help if it is implemented carefully. CBAM and safeguards may support regional supply, but they must avoid damaging downstream processors through higher input costs or poorly designed quota structures.

The real test for Europe is execution. Producers must turn sustainability and regulation into commercial value, not only compliance costs. That means proving lower carbon intensity, shorter logistics chains and stronger product reliability.

European stainless tube trade will therefore become more segmented. Commodity and ASTM process pipe will remain import-sensitive. Automotive exhaust demand will decline. Data centres and complex industrial applications will become more important.

For producers, the strategy is clear. Europe must compete where technical standards, certification, sustainability and customer proximity matter most.

The Metalnomist Commentary

European stainless tube producers are being pushed out of low-margin commodity competition and into higher-specification markets. The winners will be companies that convert regulation, traceability and technical complexity into pricing power, especially in data centres, energy systems and premium process pipe.

Kamoa Kakula Copper Guidance Cut Highlights DRC Supply Recovery Risk

Kamoa Kakula

Kamoa Kakula copper guidance has been lowered for 2026 after seismic shocks forced Ivanhoe Mines to drain and rebuild parts of the complex in the Democratic Republic of Congo. The Canadian miner now expects the asset to produce 290,000–330,000t of copper in 2026, down from its previous target of 380,000–420,000t.

The cut also affects the medium-term outlook. Ivanhoe’s 2027 target of 380,000–420,000t remains below the mine’s pre-shutdown guidance of 500,000–540,000t, although the company still expects output to exceed 500,000 t/yr from 2028.

Kamoa Kakula copper guidance matters because the project is one of the most important growth assets in the global copper pipeline. Any slower recovery from the complex affects expectations for DRC copper supply at a time when electrification, grid investment and industrial demand continue to support long-term copper consumption.

Seismic Damage Raises Costs and Delays Copper Recovery

Ivanhoe’s revised guidance shows how quickly geotechnical risk can affect large underground copper operations. The need to drain and rebuild the mine has delayed the return to earlier production targets and increased the cost of the recovery path.

Kamoa Kakula’s cash costs are now expected at $2.60–$3.00/lb this year and $2.10–$2.50/lb in 2027. That is higher than earlier expectations of around $2/lb, reflecting the combined impact of disruption, rebuilding work and inflation across key inputs.

The wider DRC copper belt remains one of the fastest-growing copper regions in the world. The country lifted output by 10% to 3.4mn t last year, but rapid growth still depends on reliable acid supply, power, transport and mine-site execution.

Sulphuric Acid and Lobito Rail Shape DRC Copper Economics

Sulphur and sulphuric acid costs remain a major pressure point for DRC copper producers. A squeeze in Middle East sulphur flows pushed delivered sulphur prices close to $900/t into Kolwezi, increasing acid costs for leaching operations.

Ivanhoe’s new smelter could reduce some of this exposure. The smelter began producing anodes and sulphuric acid late last year and could add up to 700,000 t/yr of acid once it reaches steady operation.

Transport capacity is another constraint. The first low-carbon anodes moved out of Kamoa Kakula through the Lobito corridor in February, but available rail freight still falls short of the complex’s full logistics needs.

These bottlenecks show that DRC copper growth depends on more than orebody quality. Acid integration, rail access and underground transport capacity will decide how quickly Kamoa Kakula can return to higher output.

The Metalnomist Commentary

Ivanhoe’s guidance cut shows that the copper market cannot treat DRC growth as risk-free supply. Kamoa Kakula remains a world-class asset, but seismic recovery, acid costs and logistics will determine how fast its tonnes return to market.

Wanji Aluminium Smelter Starts Construction in Xinjiang With Green Power Focus

Wanji Aluminium

Wanji aluminium smelter construction has started in China’s Xinjiang region, marking another step in the country’s shift toward larger, more energy-efficient primary aluminium capacity. The 580,000 t/yr project will require total investment of 4.6bn yuan, or about $667 million.

The Wanji aluminium smelter will use Xinjiang’s clean energy resources, including integrated wind and solar power. This gives the project a lower-carbon positioning at a time when electricity source, power cost, and emissions intensity are becoming central to aluminium competitiveness.

Wanji aluminium smelter development also follows China’s capacity replacement policy. The company currently operates a 580,000 t/yr smelter in Luoyang, Henan province, which is scheduled to be demolished by December 2027 after the Xinjiang capacity is completed.

Xinjiang Project Targets High-Efficiency Aluminium Production

The Xinjiang smelter will use 600kA large-scale electrolytic cells, which Wanji described as the world’s most efficient technology. The project will also adopt advanced process systems to reduce energy use and improve operating performance.

Power consumption is expected to be as low as 12,430 kWh/t of aluminium. That level would place the facility among the world’s most energy-efficient aluminium smelting operations.

This matters because aluminium smelting is one of the most electricity-intensive industrial processes. Producers with access to low-cost renewable power and efficient electrolytic cells can gain a structural advantage over older smelters exposed to coal power, higher tariffs, or carbon costs.

Capacity Replacement Supports China’s Aluminium Upgrade Strategy

The project is moving forward in line with Wanji’s capacity replacement plan released in August 2025. China has encouraged aluminium producers to upgrade electrolytic baths and shift more production toward greener energy sources.

The replacement of Wanji’s Luoyang smelter with the Xinjiang facility shows how China is reshaping its aluminium industry. The strategy is not only about adding volume, but replacing older capacity with larger, cleaner, and more power-efficient assets.

Wanji also plans to build the Xinjiang site into a fuller industrial chain, covering alumina through processed aluminium products. This could strengthen value integration and support downstream aluminium fabrication in the region.

The Metalnomist Commentary

Wanji’s Xinjiang project shows how China is combining capacity replacement, renewable power, and high-efficiency smelting technology to strengthen aluminium competitiveness. The key global implication is clear: low-carbon aluminium will increasingly depend on power strategy as much as smelter scale.

Global Average Temperature Rise Reinforces Urgency of Industrial Decarbonisation

WMO(the World Meteorological Organisation)

Global average temperature in 2025 reached 1.43°C above pre-industrial levels, reinforcing the urgency of industrial decarbonisation and faster deployment of low-carbon energy systems. The World Meteorological Organisation said 2025 was either the second- or third-hottest year in the 176-year observational record.

The finding keeps the world close to the 1.5°C threshold pursued under the Paris climate agreement. The WMO’s estimate includes a margin of uncertainty of 0.13°C, meaning 2025 may have temporarily exceeded 1.5°C above the pre-industrial average.

Global average temperature data also show a clear long-term trend. The past 11 years were the 11 warmest on record, while 2023, 2024, and 2025 were the three hottest years across all nine datasets reviewed by the WMO.

Greenhouse Gas Levels Keep Pressure on Energy and Industrial Policy

Greenhouse gas concentrations continued to rise, increasing pressure on governments and heavy industry to accelerate emissions reduction. CO2 reached 423.9 parts per million in 2024, its highest level in at least two million years.

The annual rise in CO2 concentration in 2024 was the largest since modern measurements began in 1957. The WMO linked the increase to continued fossil fuel emissions and weaker absorption by land and ocean carbon sinks.

Methane and nitrous oxide also reached record levels in 2024, standing at 1,942 parts per billion and 338 parts per billion, respectively. These gases add further pressure on agriculture, energy, chemicals, mining, and industrial sectors to reduce emissions across supply chains.

Climate Targets Depend on Metals, Grids, and Clean Manufacturing

Global average temperature trends have direct implications for metals and mining. Faster decarbonisation will require larger volumes of copper, aluminium, nickel, lithium, rare earths, silicon, electrical steel, and other materials used in renewable power, grids, storage, electric vehicles, and efficient industrial systems.

The transition also increases pressure on producers to cut the carbon intensity of mining, smelting, refining, and manufacturing. Low-carbon aluminium, recycled metals, renewable-powered refining, green hydrogen, and electrified process heat will become more important as customers and regulators tighten emissions standards.

At the same time, climate stress raises operational risk for the materials sector. Extreme weather can disrupt mines, ports, power supply, shipping routes, and water availability, making resilience a core part of future industrial competitiveness.

The Metalnomist Commentary

The climate data confirm that decarbonisation is no longer a distant policy theme. It is becoming a materials, infrastructure, and supply chain challenge that will define the next investment cycle in energy and industry.

Elkem Silicon Products Weaken as Low Ferro-Silicon Prices Hit Earnings

Elkem Silicon

Elkem silicon products came under pressure in 2025 as weak demand and low prices for silicon and ferro-silicon reduced group earnings despite higher sales volumes. The Norwegian metals group reported EBITDA of Nkr3.44 billion, or about $360 million, down 18% from the previous year.

Elkem silicon products remained a central part of the business, contributing 42% of group sales. Sales volumes in the division rose 3% to 434,000 tonnes, but weaker pricing outweighed the benefit of higher volumes.

The division’s EBITDA fell 47% to Nkr1.52 billion. This shows how exposed silicon producers remain to oversupply, soft industrial demand, and trade measures that are reshaping global alloy flows.

Silicon and Carbon Divisions Reflect Metallurgical Market Weakness

Elkem silicon products faced difficult conditions across silicon metal, ferro-silicon, and foundry alloy markets. The company described the environment as marked by weak demand and low sales prices, reflecting a prolonged downturn in metallurgical value chains.

The carbon solutions division also weakened. The unit, which supplies specialty carbon products to metallurgical smelting and primary aluminium producers, recorded sales of 261,000 tonnes, down 5% from 2024.

Carbon solutions EBITDA declined 20% to Nkr908 million. Elkem linked the decline to difficult conditions in metallurgical industries, where customers cut production and reduced demand for carbon inputs.

Silicones Recovery Contrasts With Trade Pressure on Alloys

Elkem’s silicones division performed strongly despite weakness in its metallurgical units. Silicones sales volumes rose 14% to 443,000 tonnes, while EBITDA more than doubled to Nkr1.10 billion after expansion projects in China and France were completed.

The stronger silicones result comes as Elkem reshapes its portfolio. The company launched a strategic review of the division last year and recently agreed to sell a majority stake to China-based Bluestar.

Trade fragmentation remains a major issue for Elkem. The company cited EU safeguard measures on ferro-silicon, ferro-manganese, and silico-manganese imports from countries including Norway and Iceland, along with US countervailing duties on Norwegian silicon metal. These measures add complexity to sales channels, pricing, and long-term competitiveness.

The Metalnomist Commentary

Elkem’s results show that higher volumes cannot protect silicon producers when prices and trade flows turn against them. The company’s restructuring and silicones sale suggest a sharper focus on surviving a fragmented, low-margin alloy market.

Germany Data Centre Capacity Strategy Targets Major AI and Grid Expansion by 2030

Data Center

Germany data centre capacity is set for a major expansion after the cabinet adopted a national strategy targeting at least a two-fold increase by 2030. The plan also aims to quadruple Germany’s AI and high-performance computing capacity over the same period.

The strategy reflects Germany’s push to strengthen digital sovereignty while competing for AI infrastructure investment. It also places data centres directly inside the country’s energy, grid, and industrial planning agenda.

Germany data centre capacity stood at 2.98GW in 2025, more than double the level recorded in 2010. AI and high-performance computing capacity totalled 500MW, while total data centre power consumption reached 21TWh.

Grid Connections Become the Main Bottleneck for AI Infrastructure

Germany’s data centre strategy identifies grid access as one of the biggest constraints on future growth. The country has strong supply security and a renewables-rich power mix, but long connection queues and limited grid capacity could slow new projects.

The strategy calls for data centre demand to be included earlier in grid infrastructure planning. It also supports more flexible connection rules, allowing transmission system operators to reserve capacity for data centres where competition for grid access is intense.

This matters for metals and electrical infrastructure suppliers. Faster data centre growth will increase demand for transformers, switchgear, copper and aluminium conductors, power cables, busbars, cooling systems, and grid reinforcement materials. The Frankfurt metropolitan area, already Germany’s largest data centre cluster, will remain a focal point for these constraints.

Energy Planning and Renewables Must Keep Pace With Digital Demand

Germany data centre capacity growth will only remain sustainable if renewable energy and grid infrastructure expand at the same pace. The strategy highlights the need to use existing infrastructure more efficiently while improving digitalisation at the distribution system operator level.

The new maturity-level procedure for large consumer grid applications is designed to create a clearer queue for major power users. Industry groups also support faster approval processes, early identification of priority areas, and better planning around water requirements.

For industrial supply chains, the message is clear. AI infrastructure is becoming a power-intensive manufacturing and materials story, not only a digital services story. As Germany scales AI and HPC capacity, the country will need more electrical metals, power equipment, cooling infrastructure, and grid-ready industrial zones.

The Metalnomist Commentary

Germany’s data centre strategy shows how AI growth is turning grid capacity into an industrial competitiveness issue. The winners will not only be cloud operators, but also suppliers of power equipment, conductors, transformers, and low-carbon electricity infrastructure.

Vulcan Energy German Lithium Licence Advances Lionheart Supply Plan

Vulcan Energy

Vulcan Energy German lithium licence approval strengthens the company’s plan to bring its Lionheart lithium hydroxide project in Germany into commercial production in 2028. The Australian developer has secured a six-year commercial production licence for its Insheim production area, a key part of the planned 24,000 t/yr lithium hydroxide project.

The licence supports Vulcan Energy’s integrated geothermal lithium model. At Insheim, the company extracts lithium-rich geothermal brine while generating renewable energy, linking battery materials production with low-carbon power generation.

The Vulcan Energy German lithium licence also improves project credibility at a critical stage. The company began construction at Lionheart in February 2026 and secured a mix of grant, equity, and debt funding in December 2025. Further production licences will still be needed as Vulcan expands the project footprint.

German Geothermal Lithium Gains Industrial Relevance

Germany’s battery supply chain needs domestic and regional lithium sources to reduce dependence on imported raw materials. Vulcan’s Lionheart project targets that gap by producing lithium hydroxide from geothermal brine in Europe’s largest automotive market.

The Insheim licence gives Vulcan a regulated path to commercial production in one of its core operating areas. The initial term runs for six years, but the company plans to apply for an extension of at least 30 years. That longer horizon matters because battery material customers need supply security beyond short contract cycles.

The Vulcan Energy German lithium licence also supports Europe’s broader industrial policy goals. Lithium hydroxide remains essential for high-nickel cathode chemistries used in electric vehicles. A domestic German source could help automakers and cathode producers reduce supply chain risk.

Offtake Commitments Support Lionheart Financing

Vulcan has already placed most of its initial Lionheart output under offtake arrangements. The company expects to sell 94-99pc of early production to four customers, including Glencore and Stellantis.

Glencore will receive around 20pc of Lionheart output over eight years. This commitment gives Vulcan a major commodity partner while providing Glencore with exposure to European lithium hydroxide supply.

The project still faces execution risk. Vulcan must secure additional licences, complete construction, prove commercial-scale brine processing, and deliver consistent battery-grade lithium hydroxide. However, permitting progress, customer commitments, and financing support make Lionheart one of Europe’s more advanced lithium supply projects.

The Metalnomist Commentary

Vulcan’s progress matters because Europe needs lithium projects that are both local and commercially bankable. The licence does not remove technical risk, but it moves geothermal lithium closer to becoming a real part of Germany’s battery materials supply chain.

Low-Carbon Aluminum Data Center Cables Advance Through Rio Tinto and Prysmian Trial

Prysmian low carbon aluminum

Low-carbon aluminum data center cables are moving from concept toward industrial validation as Rio Tinto and Prysmian complete a trial using cleaner aluminum feedstock. The partnership links primary aluminum production, cable manufacturing, and fast-growing electricity demand from digital infrastructure.

Rio Tinto produced aluminum rod for the trial using a blend of hydro-powered aluminum from its Alma smelter in Quebec and aluminum made through Elysis technology. Prysmian then used the material pathway to test low-carbon aluminum cable production for data center applications.

The trial forms part of a five-year supply agreement signed in 2023 between Rio Tinto and Prysmian. That deal focuses on low-carbon aluminum made with renewable hydropower from Rio Tinto’s Canadian operations.

Data Center Growth Raises Demand for Cleaner Conductors

Low-carbon aluminum data center cables matter because power infrastructure is becoming a larger part of the data center supply chain. Data centers require large volumes of cable, busbar, grid equipment, and electrical distribution systems as operators expand capacity for cloud computing and artificial intelligence.

Aluminum offers a strategic balance between conductivity, weight, cost, and availability. For cable manufacturers, lower-carbon aluminum can help reduce the embedded emissions of electrical infrastructure without changing the core role of aluminum as a conductor material.

Prysmian’s involvement is important because cable producers sit close to the final customer. If data center owners increasingly ask for lower-carbon materials, cable manufacturers will need stable access to verified low-carbon aluminum supply.

Elysis Technology Remains Strategic but Not Yet Scaled

Elysis aluminum gives the trial a deeper industrial meaning. The Rio Tinto and Alcoa joint venture is developing an emissions-neutral smelting process that could reduce the carbon footprint of primary aluminum production.

However, Elysis aluminum remains in development and is not yet available in large production quantities. This limits near-term commercial impact but supports longer-term qualification work with downstream users such as Prysmian.

Rio Tinto’s hydro-powered Canadian aluminum provides the scalable base for the current supply relationship. Elysis material adds a future-facing technology layer that could become more important if industrial buyers push harder for lower-emission metals.

The Metalnomist Commentary

Low-carbon aluminum data center cables show how digital infrastructure is reshaping metals demand beyond chips and servers. The next competitive advantage may come from verified low-carbon supply chains for the electrical backbone behind data centers.

CBA Aluminium Sale Clears Brazil Antitrust Review as Chalco and Rio Tinto Gain Control

CBA

CBA aluminium sale has cleared Brazil’s antitrust review after Cade approved the transaction with no restrictions. The decision allows China’s Aluminum Corporation, Chalco, and Rio Tinto to move closer to closing their acquisition of a 68.6% controlling stake in Brazilian aluminium producer CBA.

The CBA aluminium sale is strategically important because CBA is Brazil’s last remaining domestic aluminium producer. The company became especially significant after Vale sold its aluminium assets to Hydro in 2016, leaving CBA as the country’s main integrated aluminium platform.

The deal is valued at R4.69 billion, or about $900 million. Chalco and Rio Tinto also plan a tender offer to jointly acquire the remaining shares. Cade’s approval removes the last major regulatory hurdle before closing.

Integrated Aluminium Assets Give the Deal Industrial Weight

CBA operates across the full aluminium value chain. Its platform includes bauxite mining, alumina refining, primary aluminium smelting, downstream processing, recycled aluminium production, and associated power supply.

This integrated structure gives the transaction more strategic value than a simple equity acquisition. Chalco and Rio Tinto are gaining exposure to upstream raw materials, refining capacity, smelting assets, fabrication capability, and recycling operations in one company.

CBA currently operates three producing bauxite mines with combined output of about 2mn t/yr. It also has 800,000 t/yr of alumina capacity, 430,000 t/yr of primary aluminium smelting capacity, and 215,000 t/yr of downstream processing capacity.

Brazil’s Aluminium Chain Enters a New Ownership Phase

The CBA aluminium sale could reshape Brazil’s aluminium industry by bringing two major global players deeper into the country’s industrial base. Chalco adds Chinese aluminium scale and market reach, while Rio Tinto brings global mining and aluminium experience.

Brazil’s development bank Bndes has also approved R715.9mn in funding to upgrade an aluminium production unit in São Paulo. That support suggests Brazil still sees aluminium as an industrial priority, even as ownership becomes more international.

For Brazil, the key issue will be whether the new ownership structure strengthens local production, investment, and downstream competitiveness. For global aluminium markets, the transaction reinforces the value of integrated assets at a time when bauxite, alumina, power, recycling, and low-carbon production routes are becoming increasingly strategic.

The Metalnomist Commentary

The CBA transaction shows that integrated aluminium assets remain highly valuable in a fragmented global supply chain. Brazil keeps the industrial base, but future competitiveness will depend on whether new ownership turns scale into investment, modernization, and stronger downstream capacity.

Hindustan Zinc Zinc Park Gains Momentum With CMR Alloy Manufacturing Deal

Hindustan Zinc vs Vedanta

Hindustan Zinc Zinc Park is gaining industrial momentum after Vedanta’s Hindustan Zinc signed an MoU with CMR Green Technologies to establish a zinc alloys manufacturing facility in Rajasthan. The planned unit will produce zinc alloys for automotive, infrastructure, die-casting, and consumer goods applications.

Hindustan Zinc Zinc Park is being positioned as more than a downstream processing zone. It is designed to link primary zinc supply, recycling capability, alloy production, and renewable energy into a more integrated value chain. That structure could strengthen India’s ability to serve both domestic manufacturers and export markets.

The agreement also deepens Hindustan Zinc Zinc Park’s role as a platform for industrial partnerships. It follows HZL’s earlier MoU with Tripura Group, under which Hindustan Zinc will supply zinc metal to a planned unit at the park through a long-term offtake arrangement.

Zinc Alloy Demand Supports India’s Downstream Manufacturing Push

Zinc alloys are important materials for die-casting, automotive components, infrastructure products, hardware, and consumer goods. These sectors require reliable alloy supply, consistent quality, and proximity to metal sources.

The CMR Green Technologies partnership adds a recycling dimension to the project. CMR’s non-ferrous recycling expertise can support metal recovery and reuse, helping the facility align with circular economy goals. This matters as manufacturers increasingly seek lower-waste and resource-efficient supply chains.

For India, the project supports a broader shift from primary metal production toward higher-value downstream manufacturing. Instead of exporting or selling zinc mainly as refined metal, HZL can help create more alloy-based industrial activity near its own production base.

Integrated Zinc Hub Could Strengthen Supply Security

The location of Zinc Park gives the project a clear supply-chain advantage. The park is near HZL’s Dariba zinc mine and its Chanderiya and Debari smelting operations, which can support steady raw material availability for downstream units.

HZL’s dominant position also gives the park strategic weight. The company is India’s largest zinc producer and holds 77% of the domestic market. That scale can help anchor long-term supply arrangements and attract additional manufacturing partners.

The renewable energy-powered model is also significant. Energy costs and carbon performance are becoming more important for metals customers, especially in automotive, infrastructure, and export-facing sectors. If executed well, Zinc Park could become a more competitive platform for zinc alloy manufacturing in India.

The Metalnomist Commentary

HZL’s Zinc Park strategy shows how primary metal producers are moving closer to downstream industrial customers. The key opportunity is not only zinc volume, but control over alloy supply, recycling integration, and low-carbon manufacturing capacity.