Aurubis EIB copper expansion loan strengthens Europe’s critical copper supply

Aurubis

The Aurubis EIB copper expansion loan marks a major step in Europe’s critical raw materials strategy. The €200mn investment loan from the European Investment Bank (EIB) will fund capacity growth at Aurubis sites in Bulgaria and Germany. As a result, the Aurubis EIB copper expansion loan directly targets higher refined copper output and more recycled copper flows into EU industry.

The Aurubis EIB copper expansion loan is also the first EIB metals-sector financing under the bank’s new raw materials strategy. In March, the EIB committed to lend around €2bn a year to critical raw materials projects. These include extraction, processing, recycling and substitution technologies across the energy transition value chain. Therefore, the Aurubis EIB copper expansion loan serves as an early flagship for this new mandate.

EIB backs primary and secondary copper growth at Pirdop and Hamburg

Aurubis will use the EIB loan to expand both primary and secondary copper capacity. At Pirdop in Bulgaria, the company is investing €120mn to enlarge its tank-house. This expansion will lift refined copper cathode capacity by 50pc to 340,000 t/yr. Commissioning is planned for fiscal year 2025-26, adding meaningful volumes to Europe’s copper pool.

At the same time, Aurubis will invest €190mn in its Hamburg smelter and refinery complex. The project will enable an extra 30,000 t/yr of recycled copper scrap processing, alongside more internal smelting intermediates. Therefore, the Aurubis EIB copper expansion loan supports both mined copper and circular copper streams. This dual focus directly aligns with EU priorities on recycling, resource efficiency and lower embedded emissions.

These expansions will further cement Aurubis’ position as Europe’s largest copper producer. Increased output from Pirdop and Hamburg should improve regional security of supply. That security is critical as copper demand rises for grid upgrades, renewables, electric vehicles, artificial intelligence and data centre infrastructure.

Copper market vulnerability drives EU support for Aurubis

Recent market dynamics underline why the Aurubis EIB copper expansion loan matters for Europe. Earlier this year, a huge influx of global copper flowed into the US. End-users and traders stockpiled metal ahead of expected US copper import tariffs that never materialised. However, the diversion exposed how quickly European copper availability can tighten when trade flows shift.

Europe’s vulnerability stems from its heavy dependence on imported copper concentrates and refined metal. Any tariff scare, logistics disruption or geopolitical shock can pull units away from the Atlantic basin. Therefore, building more regional smelting, refining and recycling capacity has become a strategic priority. The Aurubis EIB copper expansion loan is a concrete step toward that goal.

By boosting both primary cathode output and recycled copper processing, Aurubis supports a more resilient supply base. Meanwhile, EIB-backed capital lowers financing costs and signals strong policy alignment. Over time, this combination could help stabilise European copper premia and reduce exposure to external shocks.

The Metalnomist Commentary

Aurubis’ deal with the EIB shows how copper is moving to the centre of Europe’s industrial and energy transition policy. The mix of primary capacity growth and scrap-based expansion reflects a realistic view of future copper constraints. Market participants should watch how quickly the new tank-house and Hamburg upgrades translate into additional cathode and scrap-processing volumes, especially if trade tensions divert metal again.

Vulcan Lithium Hydroxide Project Advances as German Construction Begins

Vulcan Lithium

Vulcan lithium hydroxide project development has moved into major construction in Germany, marking a key step for Europe’s domestic battery materials supply chain. Australian-listed Vulcan Energy has started building its 24,000 t/yr Lionheart lithium hydroxide project in the German state of Hesse.

The Vulcan lithium hydroxide project is scheduled to produce first output in 2028. The construction start follows Vulcan’s receipt of a six-year commercial production licence for the facility in March.

The Vulcan lithium hydroxide project is strategically important because Europe remains heavily dependent on imported lithium chemicals for battery manufacturing. Local lithium hydroxide production could support electric vehicle, battery cell and cathode supply chains across the region.

Vulcan plans to produce battery-quality lithium from low-impurity geothermal subsurface brines. The company will use direct lithium extraction technology, linking lithium production with geothermal resource development in the Upper Rhine Valley.

Geothermal Brines Support Europe’s Local Lithium Strategy

The Lionheart project is part of Europe’s broader effort to build domestic critical minerals capacity. Lithium hydroxide is a key input for high-nickel cathode chemistries used in electric vehicle batteries.

Vulcan’s route is different from conventional hard-rock lithium mining or evaporation pond production. The company plans to extract lithium from geothermal brines, then process it into battery-quality lithium hydroxide.

This matters because direct lithium extraction can reduce land use and accelerate processing compared with traditional evaporation routes. However, DLE projects still face technical and commercial execution risk because each brine system has different chemistry and operating requirements.

Construction of the surface extraction plant at Landau in the Upper Rhine Valley began in February. This upstream extraction work is critical because the lithium hydroxide plant depends on reliable brine supply and stable lithium recovery.

The project’s low-impurity geothermal brine base could give Vulcan a useful advantage if it can scale the process reliably. Battery customers require consistent quality, traceability and long-term supply security.

Public Funding Highlights Strategic Battery Materials Push

The Lionheart project received around €104mn in funding from Germany’s federal government and the states of Rhineland-Palatinate and Hesse last year. This public support shows how lithium processing has become an industrial policy priority in Europe.

Germany has a major automotive industry and is expanding battery manufacturing capacity. Domestic lithium hydroxide production could reduce exposure to overseas conversion hubs and strengthen regional supply resilience.

The project also fits Europe’s push to localise more of the battery value chain. Mining or extraction alone is not enough. Europe needs lithium chemicals, cathode materials, battery cells, recycling and downstream qualification with automakers.

Vulcan’s 24,000 t/yr planned capacity would not satisfy Europe’s full lithium demand. However, it could become a meaningful regional source if production starts as planned in 2028.

The next challenge is execution. Vulcan must complete construction, prove DLE performance, operate the geothermal brine system and qualify lithium hydroxide with battery customers.

The Metalnomist Commentary

Vulcan’s construction start shows that Europe’s battery supply-chain strategy is moving from policy ambition to industrial buildout. The project’s success will depend on whether geothermal brine extraction and lithium hydroxide conversion can scale reliably enough to meet automotive-grade standards.

Solvay Viridis Rare Earth Supply Deal Strengthens Europe’s Magnet Materials Chain

Solvay

Solvay Viridis rare earth supply agreement will give the Belgian chemicals producer a new long-term feedstock source for its La Rochelle processing plant in France. The deal will begin in 2028 and cover material from Viridis Mining and Minerals’ Colossus project in Brazil.

Solvay Viridis rare earth supply is strategically important because the feedstock includes neodymium, praseodymium, dysprosium and terbium, all critical to high-performance permanent magnets. The agreement also covers samarium, gadolinium and yttrium.

Solvay Viridis rare earth supply strengthens Europe’s effort to build a more complete rare earth value chain outside China. Solvay will process the Brazilian feedstock into high-purity rare earth oxides at La Rochelle.

The deal links upstream resources in Brazil with European separation and downstream magnet customers, creating a more diversified industrial route for strategic materials.

Colossus Feedstock Supports European Rare Earth Processing

Viridis is developing the Colossus ionic adsorption clay project in Minas Gerais, Brazil. The project has a measured and indicated resource of 329mn t grading 659ppm magnetic rare earth oxide.

Ionic adsorption clay deposits are strategically important because they can contain valuable heavy rare earths alongside light rare earths. Dysprosium and terbium are particularly important for high-temperature permanent magnet applications.

Solvay’s La Rochelle plant gives Europe an established processing base for converting these materials into high-purity oxides. That processing stage remains one of the biggest bottlenecks outside China.

The inclusion of samarium, gadolinium and yttrium also broadens the commercial value of the supply agreement. These elements serve applications across magnets, aerospace, electronics, energy and advanced materials.

For Viridis, the agreement provides a downstream route into a major European processor. For Solvay, it strengthens feedstock diversification and reduces reliance on a narrower group of suppliers.

La Rochelle Builds Links to Magnet Manufacturing

Solvay inaugurated the La Rochelle facility in April 2025 with the goal of supplying 30% of European rare earth demand by 2030. Securing feedstock is essential if the plant is to reach that scale.

The company has already built a downstream customer relationship with US magnet producer Noveon Magnetics. Solvay agreed in November 2025 to begin supplying Noveon with rare earth oxides from 2026.

This creates a clearer value chain from mineral resource to separated oxide and then to permanent magnet production. That integration is critical for customers seeking reliable non-China materials.

Europe’s rare earth strategy increasingly depends on exactly this type of linkage. Mining projects alone cannot solve supply risk unless they connect with separation, metallization, alloying and magnet manufacturing.

The Viridis agreement therefore strengthens La Rochelle’s role as a processing hub. If Colossus advances successfully, Brazilian feedstock could become an important part of Europe’s diversified magnet materials supply.

The Metalnomist Commentary

The Solvay-Viridis deal shows that Europe’s rare earth strategy is moving from processing capacity toward feedstock security. La Rochelle’s long-term competitiveness will depend on securing diverse sources of NdPr and heavy rare earths that can consistently feed magnet customers.

Metlen Gallium Project Positions Greece as New EU Critical Materials Hub

Metlen Gallium Project

Metlen gallium project approval gives Greece a stronger role in Europe’s effort to build secure supplies of critical raw materials. The Greek industrial group has secured government approval for its strategic investment to develop gallium production alongside expanded bauxite mining and alumina refining.

Metlen gallium project benefits will include grants and tax incentives totalling around €118mn. These incentives come on top of Metlen’s planned €300mn investment in the gallium production project.

Metlen gallium project development is integrated into Aluminium of Greece operations in central Greece. The structure allows gallium to be recovered as a by-product of alumina refining, linking critical minerals supply to an existing aluminium value chain.

The project matters because gallium is essential for semiconductors, defence systems, artificial intelligence applications and photovoltaics. Europe’s dependence on imported gallium has become more exposed since China imposed export controls in 2023.

Gallium Recovery Strengthens Europe’s Midstream Supply

Metlen produced gallium for the first time in January and plans to scale output over the next two years. Production is expected to continue rising in 2026, with an additional 5-10t forecast for 2027.

The company aims to reach full capacity of around 50 t/yr by 2028. At that level, Greece could become one of the largest gallium producers outside China.

The output could also be sufficient to cover current European import requirements. That would make the project strategically important for Europe’s semiconductor, defence and clean technology sectors.

Gallium recovery from alumina refining is especially significant because it adds value to an existing industrial process. Instead of relying only on new mines, Europe can recover critical materials from established aluminium operations.

This approach improves supply-chain efficiency. It also shows how by-products from major metals industries can become strategic feedstocks for advanced manufacturing.

EU Incentives Back Critical Raw Materials Security

The project has been approved under Greece’s Strategic Investments framework. It is also included under the Clean Industrial Deal State Aid Framework, which supports clean energy, industrial decarbonisation and clean technology.

The European Investment Bank has approved €90mn in financing to support the gallium facility and modernisation of upstream bauxite mining. This gives the project both national and EU-level policy support.

The investment aligns with Europe’s effort to reduce dependence on China for critical minerals. China dominates global gallium production, and its export controls have tightened supply and pushed prices higher.

For the EU, the Metlen project provides more than gallium volume. It creates a domestic industrial route from bauxite and alumina into critical semiconductor materials.

That model could become important for other by-product metals. Europe has limited time to build resilient supply chains, so projects connected to existing industrial assets may offer faster results than standalone greenfield developments.

The Metalnomist Commentary

Metlen’s gallium project shows how Europe can turn existing aluminium infrastructure into critical minerals capacity. The strategic lesson is clear: by-product recovery may become one of the fastest routes to reducing dependence on China.

Heraeus Remloy Magnet Recycling Sale Strengthens Mkango’s European Rare Earth Platform

Heraeus

Heraeus Remloy magnet recycling is set to move under Mkango Resources after Germany-headquartered Heraeus agreed to sell its rare earth magnet recycling unit to the Canadian company. The deal gives Mkango direct access to a German platform for producing neodymium-iron-boron alloy powders.

Heraeus Remloy magnet recycling is strategically important because NdFeB powders can be used by customers to manufacture new permanent magnets. These magnets are critical for electric motors, wind turbines, robotics, electronics, defence systems and advanced industrial equipment.

Heraeus Remloy magnet recycling operates from Bitterfeld in Saxony-Anhalt. The facility can produce 600 t/yr of rare earth magnetic powders, with potential to ramp up to 1,200 t/yr.

The transaction is expected to close in summer 2026, subject to regulatory approvals. Financial details were not disclosed.

Bitterfeld Facility Adds NdFeB Powder Capacity

Heraeus Remloy was developed as an in-house startup within Heraeus. Its focus on NdFeB alloy powders places it in a valuable part of the magnet recycling chain.

This matters because recycling rare earth magnets is not only about collecting scrap. The material must be processed into usable feedstock that magnet makers can qualify and reuse.

The Bitterfeld plant gives Mkango an operational base in Germany, one of Europe’s core advanced manufacturing markets. That location could support customers seeking regional rare earth magnet materials with stronger supply-chain traceability.

The facility’s 600 t/yr current capacity is modest in global terms, but meaningful for Europe’s early-stage magnet recycling industry. The option to ramp up to 1,200 t/yr adds future flexibility if demand strengthens.

For Mkango, the acquisition can deepen its downstream rare earth position. Instead of focusing only on mining or separation, the company gains a route into recycled magnet powder production.

Europe’s Magnet Recycling Chain Gains Strategic Relevance

The deal comes as Europe tries to reduce dependence on China-dominated rare earth and magnet supply chains. Recycling is becoming one of the fastest practical routes to add regional material availability.

NdFeB magnets contain neodymium and praseodymium, and some high-performance applications also use dysprosium or terbium. Recovering these materials from magnet scrap can reduce pressure on primary supply and improve circularity.

Permanent magnet recycling also supports European industrial policy. Automotive, wind power, automation and defence manufacturers increasingly need secure, traceable and lower-risk sources of magnet materials.

However, recycled powders still need customer qualification. Magnet producers require consistent chemistry, particle characteristics and performance before they can use recycled feedstock at scale.

Mkango’s challenge will be to turn the Bitterfeld asset into a reliable commercial platform. If it can expand production and secure customers, the acquisition could strengthen Europe’s rare earth recycling ecosystem.

The Metalnomist Commentary

Mkango’s purchase of Heraeus Remloy shows that rare earth recycling is moving from concept to industrial asset consolidation. Europe’s magnet security will depend on practical facilities like Bitterfeld that can convert scrap into qualified, reusable magnetic materials.

EU EV Transition Faces Energy Cost and Trade Policy Pressure

EU energy

EU EV transition plans are facing growing pressure from high energy costs, tougher global competition and a regulatory model that industry leaders say may be weakening Europe’s automotive position. Speakers at the FT Future of the Car Summit warned that Europe must rethink how it competes with China and other industrial economies.

EU EV transition policy has relied heavily on regulation, including the planned 2035 phase-out of new internal combustion engine car sales. But carmakers and suppliers argue that regulation alone cannot deliver a competitive electric vehicle industry if energy prices, subsidies and supply-chain costs remain unfavourable.

EU EV transition challenges are becoming more visible as Chinese automakers gain share in Europe, southeast Asia and Latin America. Chinese producers have built cost-competitive EV platforms through subsidies, domestic competition, supply-chain control and fast industrial scaling.

The debate matters for metals because slower or more expensive electrification can reshape demand for lithium, nickel, cobalt, manganese, copper, aluminium and rare earth magnets. Automotive materials demand will still grow, but the path may become less direct and more exposed to policy choices.

China’s EV Scale Forces Europe to Rethink Trade Strategy

European automotive suppliers are calling for a more realistic approach to global competition. The industry is facing rivals that operate under different labour, subsidy and industrial policy conditions.

China has become one of the world’s strongest EV exporters. It accounted for around 40% of global EV exports in 2024, while leading Chinese brands have expanded aggressively with lower-cost, technology-rich vehicles.

This creates a competitive problem for European carmakers. Europe has focused on setting strict emissions targets, while China has focused on making EVs cheaper, scalable and export-ready.

Several industry executives now argue that collaboration may become unavoidable. Western manufacturers may need to partner with Chinese or other international competitors that already have a technological lead in EV platforms, batteries, software and power electronics.

This could change European supply chains. Rather than developing every technology internally, carmakers may increasingly combine European assembly and branding with externally sourced EV systems.

That strategy could support faster electrification, but it also creates dependence on imported components, battery materials and processed inputs. It may help automakers compete on cost, but it does not solve Europe’s strategic materials vulnerability.

Energy Costs Could Slow Consumer Adoption and Metals Demand

High charging and energy costs are another major barrier to Europe’s EV push. If consumers face much higher charging costs than drivers in China or other regions, the economic case for EV adoption weakens.

This is critical because EV demand is highly sensitive to total ownership cost. Batteries may become cheaper, but charging costs, highway tariffs and energy price volatility can still shape consumer decisions.

For battery metals, this matters directly. Slower EV adoption would reduce the speed of demand growth for lithium, nickel, cobalt and manganese, especially in full battery electric vehicles with large battery packs.

Copper and aluminium remain better positioned across multiple automotive pathways. EVs require copper for wiring, motors, charging systems and power electronics, while aluminium supports lightweighting, battery enclosures and structural components.

However, Europe’s automotive metals demand will increasingly depend on which technology mix wins. Full BEVs support larger battery metals demand, while hybrids and lower-cost EV platforms could shift consumption toward smaller batteries, more electronics and continued use of conventional automotive materials.

The policy challenge is therefore industrial as much as environmental. Europe must reduce emissions while keeping manufacturing competitive, securing raw materials and lowering energy costs for consumers.

If Europe cannot align regulation, energy prices and trade strategy, its EV transition could become a market for imported vehicles rather than a platform for domestic industrial growth.

The Metalnomist Commentary

Europe’s EV problem is not only about regulation or consumer demand. It is about whether the region can build a cost-competitive industrial system around energy, materials, technology and trade before Chinese EV platforms define the market.

Neo Estonia rare earth magnet plant anchors Europe’s mine-to-magnet strategy

Neo

Neo Estonia rare earth magnet plant is emerging as a key pillar in Europe’s drive to localise magnet supply. Neo Performance Materials has officially opened the Neo Estonia rare earth magnet plant in Narva, with phase 1 capacity of 2,000 t/yr. The Neo Estonia rare earth magnet plant is designed to scale up to 5,000 t/yr, directly targeting fast-growing EV and industrial demand.

Neo Estonia rare earth magnet plant secures EV-grade offtake and EU support

The new plant has already shipped sintered magnet samples that meet EV traction motor grade standards. Neo produced around 18,000 assembled magnet pieces during initial runs, demonstrating commercial readiness for Europe’s automotive supply chain. As a result, a top European traction motor supplier has committed to buy 35pc of phase 1 output.

The Neo Estonia rare earth magnet plant also benefits from early support under the EU’s Just Transition fund. This political backing signals Brussels’ intent to build strategic magnet capacity closer to European automakers. Meanwhile, the phased design allows Neo to ramp from 2,000 t/yr to 5,000 t/yr as demand for permanent magnets in EVs, wind turbines and industrial motors accelerates.

Neo is building more than a stand-alone factory in Narva. The company already operates a 3,000 t/yr light rare earth separation plant at Silmet, west of Narva. Therefore, the Estonia hub brings Europe closer to an integrated mine-to-magnet route, reducing over-reliance on Chinese rare earth processing and magnet supply.

Bosch deal accelerates Neo’s mine-to-magnet roadmap beyond Estonia

Neo’s newly announced multi-year contract with Bosch significantly strengthens visibility for future magnet volumes. Under the agreement, Neo will reserve “significant annual magnet production capacity” for the German manufacturer. This commitment supports long-term planning and underpins the business case for expanding magnet capacity beyond Estonia.

At the same time, the Bosch agreement hastens the roadmap for Neo’s next magnet plants in Europe or North America. In addition, the deal positions Neo as a strategic partner for Tier 1 auto suppliers seeking secure rare earth magnet sourcing. For OEMs facing tight margins on EV platforms, diversified magnet supply with transparent ESG credentials is becoming a competitive advantage.

Neo’s strategy of combining separation capacity at Silmet with downstream magnet production in Narva aligns with broader mine-to-magnet ambitions in the Atlantic region. While raw material security still depends on upstream feedstock, Europe now gains an important building block in a more resilient rare earth supply chain.

The Metalnomist Commentary

Europe’s long-discussed mine-to-magnet vision is finally moving from PowerPoint to production lines in places like Narva. Neo’s Estonia complex shows how modest-scale, strategically placed magnet plants can de-risk supply for EV and industrial customers. The real test will be whether upstream feedstock, policy support and OEM offtakes scale fast enough to match China’s entrenched dominance.

Spain Critical Raw Materials Plan Targets Mining Supply Chain Revival

Spain Mining

Spain critical raw materials policy is moving into a more active phase as the government prepares to invest €414 million to strengthen domestic mining and raw material supply. The funding will support recycling, mineral exploration, abandoned mine restoration, and workforce training across the Spanish mining sector.

The plan reflects Europe’s wider push to reduce dependence on imported critical minerals. Spain already holds an important position in the EU mining landscape. It ranks as the bloc’s second-largest copper producer and third-largest tungsten producer, giving the country a stronger base than many European peers.

Spain critical raw materials investment also comes as the EU accelerates project selection under the Critical Raw Materials Act. The European Commission has selected seven strategic mining and raw material projects in Spain, placing the country just behind Germany and France in the European project pipeline.

National Exploration Program Signals a Return to Resource Strategy

The most important part of the plan is Spain’s first National Mining Exploration Program in 50 years. The government plans to allocate €182 million to the program, marking a major shift from passive resource ownership to active resource development.

Exploration is critical because Europe’s raw material strategy cannot rely only on known deposits. Copper, tungsten, lithium, rare earths, and other strategic minerals require long development timelines. Without fresh exploration, permitting reform, and financing support, Europe’s supply ambitions will remain exposed to overseas sources.

Spain’s geological position gives the program clear industrial relevance. Copper supports power grids, electrification, renewable energy systems, and industrial manufacturing. Tungsten remains important for hard metals, defense applications, aerospace tooling, and high-performance manufacturing. As a result, the Spanish mining sector could become more strategically important to Europe’s energy transition and industrial security.

Financing Risk Remains the Main Barrier for Spanish Mining Projects

Spain critical raw materials funding addresses a long-standing complaint from mining companies. Industry players have asked for clearer financial and regulatory support because many emerging projects remain stalled despite strong policy interest.

The core problem is risk. Mining projects require large upfront capital, long permitting processes, and uncertain development timelines. Banks and investors often hesitate to provide credit lines, especially for early-stage projects that lack proven production economics.

The new funding can help reduce that gap, but it will not solve every obstacle. Spain must still convert policy support into bankable projects, faster approvals, skilled labor, and reliable infrastructure. If the government succeeds, the Spanish mining sector could become a stronger pillar of Europe’s critical raw materials strategy.

The Metalnomist Commentary

Spain’s plan is strategically important because it links exploration, recycling, and mine restoration into one raw materials agenda. However, the decisive test will be whether public funding can unlock private capital for projects that banks still view as too risky.

Germany Pushes EU to Impose Aluminium Scrap Export Tariffs

Aluminum Scrap

Rising US demand sparks supply concerns and threatens Europe’s circular economy framework

Aluminium Deutschland Warns of Scrap Outflow Risk

Germany's aluminium industry group, Aluminium Deutschland, has urged the EU to impose aluminium scrap export tariffs. This demand follows the United States’ decision to implement a 25% tariff on primary aluminium imports, while keeping aluminium scrap exempt from the tariff.

As a result, US buyers are likely to switch from importing primary aluminium to sourcing cheaper scrap — particularly from Europe. This shift could lead to a serious shortage of scrap for European recyclers, who rely on stable domestic supply for their operations.

US-EU Price Gap Accelerates Market Arbitrage

The arbitrage between US and EU aluminium prices has widened sharply in recent months. According to market data, the premium gap surged from $110/t in November to nearly $700/t in early May 2025. This creates a strong incentive for exporters to redirect scrap to the US market, further tightening EU supply.

Aluminium Deutschland emphasized that this trend could undermine Europe’s recycling industry. President Rob van Gils called for “swift and decisive action” to avoid dismantling years of progress in circular economy infrastructure.

Europe Faces Growing Scrap Scarcity

Europe's aluminium scrap supply is already strained. Sluggish industrial activity has lowered fresh scrap generation, while Asian demand remains strong, forcing EU recyclers to compete globally. If the EU does not act, companies could face escalating shortages, threatening decarbonisation goals and raw materials security.

The Metalnomist Commentary

Germany’s call for aluminium scrap export tariffs reflects a growing geopolitical competition over raw materials. As secondary aluminium becomes a substitute for tariffed primary metal, the EU risks losing strategic feedstock to global arbitrage. Scrap policy will increasingly define the success or failure of Europe’s industrial climate goals.

 

EU ETS and CBAM Reform Moves to the Center of Europe’s Industrial Debate

EU ETS

EU ETS and CBAM reform has moved to the center of Europe’s industrial debate. European leaders and major industrial executives now want climate policy to protect competitiveness more effectively. They argue that energy costs and carbon costs are putting heavy pressure on manufacturers. As a result, EU ETS and CBAM reform is becoming a core test of Europe’s industrial strategy.

Ursula von der Leyen made the message clear in Antwerp. She said more ETS revenues should flow back into industry instead of remaining underused. EU ETS revenues have exceeded €260bn since 2005, but only a small share has supported industrial decarbonisation. Therefore, EU ETS and CBAM reform is no longer only about emissions policy. It is also about how Europe funds industrial survival and transition.

Industrial leaders are also asking for a harder review of the current ETS design. Cefic’s leadership argued that two decades of ETS policy may have created unintended pressure on European producers. That criticism reflects a wider concern across chemicals, steel, and fertilizers. Consequently, EU industrial competitiveness is now being discussed alongside carbon ambition, not after it.

ETS Revenues for Industry Are Becoming a Main Political Demand

ETS revenues for industry are now one of the clearest demands from business leaders. Companies want a larger share of carbon-market income returned to industrial decarbonisation projects. They argue that this money should help fund cleaner production, not simply disappear into general state budgets. As a result, the summer ETS reform debate could become highly consequential for manufacturers.

This issue matters because European industry is already under cost pressure. Energy prices remain volatile, and carbon costs add another burden to production. If ETS revenues are reinvested more directly, companies may gain more confidence to modernize assets and keep production in Europe. Therefore, ETS revenues for industry could become one of the most practical tools in the reform package.

French president Emmanuel Macron added a similar message from a competitiveness angle. He argued that ETS must support decarbonisation without damaging industry. That framing is important because it shifts the debate from climate policy alone to climate policy design. Meanwhile, it strengthens the case for reforms that are more responsive to industrial reality.

CBAM Certainty Will Matter as Much as CBAM Ambition

CBAM certainty is now just as important as CBAM ambition. Macron said CBAM is necessary if Europe wants to preserve sectors such as steel. However, industry leaders warned that mixed signals from Brussels are creating confusion. That confusion risks weakening trust in the policy before it is fully established.

Yara’s chief executive highlighted that risk directly. He said fertilizer producers faced serious uncertainty after the Commission discussed a possible temporary suspension for some CBAM goods. Even the idea of retroactive change unsettled the market. Therefore, EU ETS and CBAM reform must now address policy stability as well as policy strength.

The wider business message from Antwerp was straightforward. European companies are not asking to avoid the transition. They are asking for competitive conditions that allow them to lead it. Public procurement, private buyer initiatives, and clearer climate rules could all help create that framework. As a result, CBAM certainty may prove just as critical as carbon pricing itself.

The Metalnomist Commentary

Europe is entering a more difficult phase of climate policy. Setting carbon rules was the first challenge, but making them industrially workable is the next one. If Brussels cannot deliver both stronger support and greater policy clarity, EU ETS and CBAM reform may protect ambition while weakening the industries expected to carry it.

EU funding boosts sustainable indium mining at Germany’s Pohla mine

Saxore Bergbau

EU funding for sustainable indium mining is giving new life to Germany’s historic Pohla mine in Saxony. First Tin subsidiary Saxore Bergbau has secured support to prove that sustainable indium mining can be commercially viable through bioleaching, using micro-organisms instead of traditional smelting. The Tellerhauser project hosts more than 700t of indicated indium, alongside tin, tungsten and fluorspar, making it one of Europe’s largest indium deposits. This combination of scale and low-impact technology positions sustainable indium mining as a core element of Europe’s critical raw materials strategy.

Bioleaching moves sustainable indium mining into the low-emission era

The EU-backed XTRACT project will provide €200,000 to develop bioleaching at Pohla, with pilot operations targeted for 2026. Bioleaching, also called biomining, uses micro-organisms to dissolve metals from ore under controlled conditions. As a result, it avoids the high temperatures and sulphur dioxide emissions associated with conventional smelting. The process stabilises sulphate toxins, reduces local air pollution and allows metal recovery from low-grade tailings that would usually be discarded. If successful at industrial scale, bioleaching could prove that sustainable indium mining can both cut emissions and unlock value from legacy waste streams. This aligns closely with EU climate goals and the push to decarbonise upstream metals production.

Turning legacy mine waste into strategic critical metal supply

Pohla previously produced uranium and tin before closing in 1990, leaving behind waste piles and partially mined resources. Now, the Tellerhauser project aims to convert that legacy into a modern source of indium, tin, tungsten and fluorspar. XTRACT will also test technologies for treating old waste piles and abandoned sites, targeting both environmental remediation and recovery of additional valuable metals. In practice, that means turning historical liabilities into assets while reducing the footprint of new mining. For Europe’s electronics, photovoltaic and advanced materials sectors, sustainable indium mining at Pohla could become a blueprint for securing critical supply without repeating the environmental mistakes of past decades.

The Metalnomist Commentary

This project sits at the intersection of critical minerals security and environmental innovation. If bioleaching at Tellerhauser delivers on its promise, it could accelerate wider deployment of biomining across Europe’s legacy sites and reshape how the region views mine waste. For downstream users of indium and associated metals, the outcome will signal how fast Europe can scale cleaner, home-grown critical metal supply.

Glencore Secures Future Copper Output from Romania’s Rovina Valley Project

Cu Mining

Euro Sun Mining, a Canadian mining company, has signed a pivotal offtake agreement with Glencore, a global leader in mining and commodity trading, for the future copper and gold concentrates produced at the Rovina Valley project in Romania. The agreement, which was finalized on October 31, gives Glencore the right of first refusal on the project's future production and the authority to nominate one director to Euro Sun's board.

Rovina Valley’s Strategic Importance for Europe’s Metal Security

The Rovina Valley project is located in Romania and is Europe’s second-largest copper and gold deposit. With confirmed resources totaling 400 million tons, the site holds approximately 7 million ounces of gold and 625,000 tons of copper spread across three deposits: Colnic, Rovina, and Ciresata. Estimated to produce 10,400 tons of copper annually over a 17-year mine life, the project is considered critical for securing raw material supplies for Europe.

Euro Sun’s CEO, Grant Sboros, emphasized the significant potential of the Rovina Valley project, not only for Romania’s economy but also for the future of Europe’s raw material security. However, before mining can commence, Euro Sun must obtain a new environmental permit, which has delayed the start of operations.

Key Highlights of the Agreement and Project

• Offtake Agreement: Glencore has secured the right of first refusal for all future concentrates from the Rovina Valley project.
• Environmental Permit: Euro Sun is in the process of securing a new environmental permit to begin mining activities.
• Production Estimates: The Rovina Valley project is expected to produce 10,400 tons of copper annually over a 17-year period.

This agreement positions Glencore as a significant player in the future of the Rovina Valley project, while also strengthening its foothold in Europe’s competitive metals market.

Amag Aluminium Loan Strengthens Europe’s Push for Advanced Aluminium Manufacturing

Amag Aluminium

Amag aluminium loan financing from the European Investment Bank will support new research, digitalisation, and sustainable manufacturing in Austria’s downstream aluminium sector. The €75mn loan gives Amag fresh capital to develop higher-value aluminium products while improving the environmental performance of its Upper Austria production base.

The financing marks the first EIB loan in Austria under the TechEU programme. That matters because the programme is designed to accelerate European innovation in strategic industries. For aluminium, this support comes as Europe seeks more resilient supply chains for materials used in transport, packaging, energy infrastructure, and net-zero technologies.

Amag plans to use the loan as part of a wider research investment programme expected to reach €168mn between 2025 and 2028. The Amag aluminium loan therefore supports more than one company’s balance sheet. It also reflects Europe’s effort to protect industrial capability in a sector exposed to energy costs, import competition, and decarbonisation pressure.

EIB Financing Supports Aluminium R&D and Digitalisation

The EIB financing will help Amag develop advanced aluminium products and modernise manufacturing processes. This is important because downstream aluminium producers increasingly compete on alloy performance, process efficiency, traceability, and carbon footprint rather than volume alone.

Digitalisation will likely play a central role in that competitiveness. Aluminium rolling, casting, recycling, and finishing operations depend on tight process control. Better data systems can improve yield, reduce waste, and support more consistent product quality for demanding customers in automotive, aerospace, industrial, and energy transition markets.

The Amag aluminium loan also highlights how public financing is becoming more closely tied to industrial technology. Europe is trying to support companies that can upgrade manufacturing while meeting stricter sustainability requirements. For aluminium producers, that means combining product innovation with lower-emission operations.

Critical Raw Materials Policy Raises Aluminium’s Strategic Role

The loan also aligns with the European Critical Raw Materials Act. Although aluminium is widely traded, Europe increasingly treats it as a strategic material because it underpins net-zero technologies, lightweight transport, power infrastructure, and manufacturing resilience.

This policy connection is significant for downstream producers. Europe does not only need raw metal supply. It also needs domestic capacity to convert aluminium into advanced products that meet industrial and environmental standards. Companies such as Amag sit in that critical middle layer between raw material supply and finished manufacturing.

The EIB’s support therefore strengthens Europe’s aluminium value chain at a time when industrial policy is becoming more active. As global competition intensifies, financing for research and sustainable production can help European producers defend higher-value market positions and reduce dependence on imported materials and technologies.

The Metalnomist Commentary

The Amag aluminium loan shows how Europe is using finance as an industrial policy tool. The bigger message is clear: aluminium competitiveness will depend on innovation, low-carbon production, and control over strategic manufacturing capacity.

Solvay Starts Rare Earth Oxide Refining for Magnet Production

Solvay

La Rochelle Plant Begins Neodymium and Praseodymium Oxide Output

Belgian chemical company Solvay has officially begun refining neodymium and praseodymium oxides for permanent magnets at its La Rochelle facility in France. This expansion marks the company's first step into magnet-grade rare earth oxide production, positioning it as a key player in the European supply chain for critical magnet materials.

The La Rochelle plant, operational since 1948 and owned by Solvay since 2011, previously focused on refining cerium and supplying sectors such as automotive catalysts and healthcare. The new line now enables production of neodymium-praseodymium (NdPr) oxides, with potential for separating dysprosium and terbium in the future, according to a Solvay spokesperson.

Europe Strengthens Rare Earth Independence

This development comes amid growing urgency in the West to reduce dependency on Chinese rare earths. China’s recent export restrictions on heavy rare earths and magnet materials—announced in response to new U.S. tariffs—have underscored the fragility of global supply chains. These restrictions follow similar export limits on gallium and tungsten, which led to global supply disruptions and price surges.

Solvay’s La Rochelle initiative aligns with Europe’s strategic goal of securing a domestic rare earth supply chain. The company aims to meet 30% of Europe’s demand for magnet-focused rare earth oxides by 2030. Solvay also emphasized the significance of this production line as a major milestone in its contribution to Europe's energy and industrial independence.

Securing Supply Through Recycling and Strategic Partnerships

To ensure consistent feedstock, Solvay has partnered with Canadian firm Cyclic Materials to source recycled mixed rare earth oxide. Additionally, Solvay has a strategic alliance with rare earths services company Carester, which is developing the Caremag refining plant in Lacq, France. These partnerships help diversify sourcing and reduce reliance on virgin materials or imports.

The Metalnomist Commentary

Solvay’s magnet-focused rare earth production is a timely and strategic response to rising geopolitical tensions and critical mineral nationalism. As Western economies scramble to localize high-tech material supply chains, Solvay’s effort not only bridges a crucial gap in refining capacity but also sets a precedent for integrating recycling and partnerships into Europe’s rare earth future.

Hydro Announces Major Investment in Low-Carbon Aluminium Wire Rod Facility

Hydro

New Casthouse at Karmoy to Support Europe’s Energy Transition with Sustainable Aluminium

Hydro to Launch 110,000 t/yr Aluminium Wire Rod Casthouse in Norway

Norwegian aluminium producer Hydro has unveiled plans to build a 110,000-ton-per-year aluminium wire rod casthouse at its smelter in Karmoy, Norway. This marks the company’s largest domestic investment in a decade, signaling its commitment to supplying the materials needed for Europe’s accelerating energy transition.

Set to begin production in Q1 2028, the new facility will manufacture low-carbon aluminium wire rod specifically designed for power cables. These cables are critical to the growing renewable energy infrastructure across the continent.

Hydro emphasized that aluminium's light weight, durability, and recyclability make it ideal for energy systems. Notably, aluminium conductors provide the same electrical conductivity as copper while weighing only half as much.

Surging Demand for Sustainable Aluminium in Energy Infrastructure

Hydro has observed rising demand for low-carbon aluminium in recent years, even as overall aluminium market activity remains subdued. The shift is driven by Europe’s push for sustainable energy transmission systems, which increasingly favor renewable materials.

“We see in our own sales figures an increasing awareness in the market that future renewable energy must be transported with renewable materials,” said Hydro CEO Eivind Kallevik. This trend aligns with broader decarbonization efforts within the European Union’s Green Deal framework.

Final Investment Decision Expected by Year-End

While the plan is progressing, Hydro stated that a final investment decision will be made in the fourth quarter of 2025. If approved, the Karmoy project will not only expand Hydro’s low-carbon product portfolio but also strengthen Norway’s role in Europe's clean energy material supply chain.

The Metalnomist Commentary 

Hydro’s strategic pivot toward low-carbon wire rod production is more than a manufacturing expansion—it's a signal to the broader metals industry. As governments and utilities demand greener grids, aluminium wire rod is quietly emerging as a frontline material for climate-resilient infrastructure. With weight and recyclability on its side, aluminium could challenge copper in critical grid applications. Hydro’s move reinforces how upstream aluminium strategies are now tightly linked to downstream energy policy.

CNGR to Withdraw from pCAM Plant in Finland

CNGR Advanced Materials

Strategic Exit Reflects Shifting Battery Market Conditions

Chinese battery materials producer CNGR Advanced Materials will exit its planned pCAM plant in Finland, citing tough market conditions. The plant, located in Hamina, was expected to produce 60,000 metric tonnes per year of precursor cathode active materials (pCAM).

CNGR’s withdrawal was driven by slower EV adoption in the EU and regulatory uncertainties, according to CEO Dani Widjaja. The move signals CNGR’s intent to focus on core operations amid a changing global demand environment for battery materials.

As a result, the Finnish Minerals Group — a state-owned special purpose entity — will now hold full ownership of the joint venture.

Second Global Pullback Raises Supply Chain Questions

This is CNGR’s second major overseas exit in 2024, following its earlier withdrawal from a nickel JV with South Korea's Posco. Such retrenchments highlight how macroeconomic and policy shifts can reshape battery material investment strategies.

The decision could also impact Finland’s broader ambitions in the battery supply chain.

Specifically, it raises questions for the Easpring-Finnish Minerals Group CAM joint venture, as pCAM is a critical upstream input.

Meanwhile, Finland remains committed to building out its domestic battery value chain, though investor appetite may now face increased scrutiny.

EU Battery Landscape Faces Investment Headwinds

CNGR’s exit reflects broader investment hesitation in Europe’s EV materials sector, which has been slower to mature than expected. High inflation, policy delays, and competition from US incentives have complicated Europe’s path toward battery supply autonomy.

However, Finland continues to be a key node in Europe’s raw material strategy, offering abundant natural resources and strong political support. Yet securing consistent, long-term partners will be essential to maintaining momentum in battery precursor and cathode development.

The Metalnomist Commentary

CNGR’s Finland retreat is a cautionary tale for Europe’s battery ambitions. Supply chain localization must move faster than global headwinds. Without synchronized policy and demand growth, the continent risks losing strategic partners to more stable or incentivized regions.

Greenland Resources Molybdenum Supply Deal Strengthens Europe’s Steel Alloy Chain

Greenland Resources

Greenland Resources molybdenum supply plans gained further commercial support after the Canadian mine developer signed an MOU with Rogesa for long-term molybdenum products. Rogesa is a subsidiary of German steelmakers Dillinger and Saarstahl, making the agreement directly relevant to Europe’s steel alloy supply chain.

The MOU covers potential supply of ferro-molybdenum, molybdenum oxide and briquettes from Greenland Resources’ Malmbjerg project in eastern Greenland. The molybdenum ore would later be refined in Belgium before entering European industrial markets.

Greenland Resources molybdenum supply remains subject to project development and future commercial arrangements, as the agreement does not yet disclose final volumes. However, the deal adds another offtake signal for a project that Europe increasingly views through the lens of raw material security.

Malmbjerg Project Adds Strategic Value to European Alloy Supply

The Malmbjerg molybdenum project has gained strategic relevance because molybdenum is essential for high-performance steels, stainless steels, tool steels and specialty alloys. It improves strength, corrosion resistance and high-temperature performance in demanding industrial applications.

The project received a 30-year exploitation permit in June 2025, but commercial production has not yet started. This makes offtake interest important because long-term buyers can support financing, project confidence and future market positioning.

The EU’s support for the project also highlights its strategic value. Canada’s natural resources department has conditionally approved a C$7mn grant, while Europe has signalled willingness to help fund the project as part of its broader critical raw materials strategy.

Rogesa Agreement Builds on Wider Offtake Momentum

The Rogesa MOU adds to a growing list of Greenland Resources molybdenum supply agreements. The company has already signed offtake MOUs with Hempel, Cogne, Outokumpu and GMH Group.

This pattern shows that European industrial buyers are looking for more secure molybdenum supply outside traditional channels. For steelmakers, reliable access to molybdenum matters because alloy availability can influence product quality, cost control and production planning.

The planned refining route through Belgium also strengthens the European value-chain angle. If Malmbjerg advances, the project could connect Greenlandic ore, European refining and regional steel alloy demand into a more resilient supply model.

The Metalnomist Commentary

The Rogesa MOU shows that molybdenum is becoming part of Europe’s wider raw material security agenda. Greenland Resources still needs to move Malmbjerg into production, but its growing offtake base gives the project stronger strategic credibility.

EU 2035 combustion engine phase-out target faces united EV industry push

EV

The EU 2035 combustion engine phase-out target is now defended by Europe’s leading EV manufacturers. Over 150 e-mobility firms urge Brussels to stand firm and protect the zero-emission deadline. Therefore the EU 2035 combustion engine phase-out target has become a symbol of industrial credibility and climate ambition.

Industry leaders argue that policy stability underpins Europe’s EV investment, jobs and charging infrastructure expansion. They highlight hundreds of billions of euros already committed across the electric vehicle value chain. As a result, they warn that political backtracking would undermine investor confidence and weaken Europe’s green industrial strategy.

Investment, jobs and the EU 2035 combustion engine phase-out target

The EU 2035 combustion engine phase-out target gives manufacturers a clear roadmap for capital deployment. Signatories point to over 150,000 new jobs created in gigafactories, retooled car plants and charging networks. Meanwhile, they stress that skills, grid resilience and supply chains already adapt to this long-term regulatory signal.

These commitments stretch from battery gigafactories in France and Germany to upgraded plants in Slovakia and Belgium. Therefore any delay to the EU 2035 combustion engine phase-out target would freeze project pipelines and defer hiring plans. The letter argues that such hesitation would reward more aggressive global competitors, particularly Chinese EV and battery makers.

Policy flexibility, global competition and EV demand momentum

The European Commission has already proposed short term flexibility on CO2 targets between 2025 and 2027. However, climate officials insist that the 2035 zero-emission goal for new cars and vans remains intact. This combination seeks to ease the transition while preserving long term certainty for investors and suppliers.

Market data shows that electric mobility continues to expand despite policy debate. Battery electric vehicle registrations in Europe rose by 34pc year on year in early 2025. As a result, industry leaders argue that weakening the trajectory now would waste hard won demand momentum.

The letter further warns that relaxing the deadline would “permanently hand the advantage” to global rivals. Europe’s EV champions see the 2035 target as a competitive anchor against heavily supported Chinese manufacturers. Therefore, they urge Brussels to pair regulatory certainty with bolder support for localized batteries, components and charging infrastructure.

The Metalnomist Commentary

The industry’s defence of the EU 2035 combustion engine phase-out target highlights how deeply capital is now locked into electrification. For metals, batteries and charging players, regulatory wobble is a larger risk than short term demand volatility. If the EU holds course while sharpening implementation tools, Europe can still shape the global EV race rather than react to it.

Enduring Reliance Amid Sanctions: Europe’s Russian Titanium Dilemma

VSMPO Titanium

Introduction: A Supply Chain Unbroken in Wartime

Despite sweeping economic sanctions imposed by the West following Russia’s invasion of Ukraine in February 2022, one supply chain has proved remarkably resilient: Russian titanium sponge. Europe’s quandary over this advanced material—indispensable to aerospace, defense, and medical-device manufacturing—has only deepened.

Russia’s Command of Titanium

Russia ranks among the world’s largest titanium producers. VSMPO-AVISMA, the country’s flagship producer, accounts for 90% of Russia’s titanium output and exports to some 50 countries. The company is estimated to control up to 30% of the global titanium market and nearly half of aerospace-grade supply.

Russia’s dominance rests on abundant raw-material reserves and comparatively low energy costs. Because titanium smelting is energy-intensive, commercial viability depends on cheap power and gas—conditions Russia has historically met.

Airbus A380

Trade that Continues Despite Sanctions

On 7 March 2022, Boeing announced it would halt purchases of Russian titanium used in aircraft manufacturing. Rolls-Royce and Boeing subsequently suspended procurement from VSMPO-AVISMA indefinitely.

Europe, however, charted a different course. Airbus urged the European Union to keep Russian titanium outside future sanctions packages. As Airbus chief executive Guillaume Faury argued, titanium represents a small share of Russia’s total exports, so sanctions would inflict little pain on Moscow while dealing a heavy blow to Europe’s aerospace industry.

Today, Airbus still sources roughly half of its titanium from VSMPO-AVISMA. Boeing, by contrast, once relied on Russia for about one-third of its titanium but has since stopped buying Russian material.

The Limits—and Exceptions—of EU Sanctions

Notably, while the EU has restricted imports of Russian steel and coal, titanium has not been sanctioned. The metal remains a strategic material used in fuselages, turbine blades, satellites, and other critical systems.

Dependence on Russian metals endures in other segments as well. From March to June 2022, combined EU-US imports of Russian aluminum and nickel rose to $1.98 billion—more than 70% above the prior-year period.

Washington and Brussels have generally refrained from designating industrial metals as sanction targets. Europe continues to import large volumes of Russian natural gas, and Russia supplies about 40% of global palladium—vital for semiconductors—implicating everything from automobiles to smartphones.

CBAM

CBAM: A New Variable

The EU’s Carbon Border Adjustment Mechanism (CBAM), introduced in October 2023, adds another layer of complexity. CBAM initially covers cement, electricity, fertilizers, iron and steel, aluminum, hydrogen, and certain downstream products in steel and aluminum. After a transition phase through 2025, full implementation begins in 2026, imposing carbon costs on imports equivalent to those borne by EU producers.

While fertilizers, cement, hydrogen, and non-exported electricity may see limited near-term impact, aluminum stands out as a key target sector. Most exports to the EU beyond steel and aluminum are not yet covered, though the European Commission has signaled possible expansion to high-leakage categories such as organic chemicals and plastics.

Russia is structurally disadvantaged under CBAM. Steel production in Russia, Ukraine, and Türkiye tends to be more carbon-intensive, implying higher embedded-carbon costs at the border.

Ambiguities in Sanctions and Industry’s Dilemma

The United States placed VSMPO-AVISMA on its “military end-user” list, restricting access to advanced technologies, but stopped short of a direct ban on titanium sales—an acknowledgment of global industry’s reliance on the material.

Indeed, during the early stages of the war, VSMPO-AVISMA avoided sweeping US and European sanctions. Although Washington temporarily listed the company in December 2020, the measure was later rescinded.

Recent moves, however, suggest a tightening environment. In April 2024, a joint US-UK action prompted the CME and LME to prohibit trade in newly produced Russian aluminum, copper, and nickel dated after 13 April—an effort widely read as constraining Russia’s influence in metals markets.

Ukraine Titanium Mine

Ukraine: A Viable Alternative?

Against this backdrop, Ukraine has emerged as a potential alternative. Until 2020, the country supplied 90% of Russia’s ilmenite—the feedstock for titanium sponge. With that supply chain severed by war, Ukrainian resources could help challenge Russia’s dominance.

US companies have begun talks with Kyiv on a joint venture anchored by the Zaporizhzhia Titanium-Magnesium Plant (ZTMP). Such partnerships could forge a new titanium hub in Eastern Europe, strengthening Ukraine’s economic footing for decades.

The risks are significant. Ongoing conflict and occupation threaten both Donbas deposits and the ZTMP facilities, which remain exposed to shelling and sabotage.

Aviation’s Growth—and Its Dilemma

The aerospace-titanium market was valued at roughly $100 million in 2022 and is projected to grow at a CAGR exceeding 5% from 2023 to 2032—reflecting the rebound in air travel and a pipeline of commercial aircraft programs.

Despite supply-chain turbulence from war, energy constraints, and labor shortages, passenger traffic continues to recover, lifting titanium demand. In October 2022, Airbus announced plans to deliver more than one aircraft per week to India, persisting with expansion despite engine-supply challenges and domestic carrier capacity constraints—developments that further complicate titanium sourcing.

The Reality of Diversification

Boeing reportedly began diversifying away from Russian titanium after the 2014 annexation of Crimea. Airbus, by contrast, remains heavily reliant on Russian supply.

Globally, China produced around 100,000 t of titanium in 2013—twice the combined output of Russia and Japan at the time—making it the world’s largest producer. Japan ranked third, with Osaka Titanium Technologies standing as the world’s second-largest producer of titanium sponge.

The Metalnomist Commentary: An Unfinished Dilemma

Europe’s struggle over Russian titanium sponge epitomizes the knotty realities of modern supply chains. Between economic sanctions and security imperatives, between industrial competitiveness and moral principle, Europe has yet to find a definitive answer.

With CBAM’s full force arriving in 2026, higher carbon-cost pass-throughs on Russian metals seem likely, intensifying pressure to rewire supply. Yet, as Airbus’s position illustrates, displacing Russian titanium in the short term remains daunting.

The gap between industrial necessity and political sanction endures—witness VSMPO-AVISMA’s August 2025 statement that it stands ready to resume cooperation with Boeing. For now, Europe must navigate this dilemma with prudence: balancing sanction principles, industrial realities, and emergent environmental rules—while accelerating the use of recycled titanium wherever feasible.

EU Zinc Imports Fell in 2025 as Dutch and German Demand Weakened

Zinc

EU zinc imports declined in 2025 as weaker buying from the Netherlands and Germany outweighed stronger flows into Italy and Belgium. EU countries imported 1mn t of refined 99.99pc grade unwrought zinc, down 3.2% from the previous year.

EU zinc imports remained closely tied to Europe’s uneven industrial demand. Zinc consumption depends heavily on galvanizing, construction, automotive parts, die casting, infrastructure and manufacturing activity, all of which faced mixed conditions across the region.

EU zinc imports also showed a shift in regional trade flows. The Netherlands remained the largest importer, but its volumes fell sharply, while Italy recorded a strong increase from May onward.

Netherlands and Germany Led the Import Decline

The Netherlands accounted for 22.5% of EU refined zinc imports in 2025, with about 225,950t. However, this was down by roughly 21% on the year, showing weaker intake from Europe’s main zinc import hub.

Germany, the second-largest importer, also reduced purchases. Its imports fell by 10.6% to nearly 198,400t, reflecting continued pressure from weak construction and manufacturing activity.

Belgium moved in the opposite direction, with imports rising by 1.1% to 171,600t. Italy posted the strongest increase among major buyers, with imports rising by 60% to 140,100t after firm year-on-year gains every month from May.

Spain Increased Zinc Supply as Finland and Belgium Fell

Spain became a stronger supplier within the EU refined zinc market in 2025. The country accounted for just over 180,800t of member states’ imports, up 42% from the previous year.

But Spain’s gains were offset by lower deliveries from Finland and Belgium. Finland’s exports fell by 27.4% to 156,180t, while Belgium’s exports declined by 17.7% to nearly 118,600t.

LME three-month zinc prices averaged $2,853/t in 2025, up 1.5% from the previous year. The modest price increase showed some recovery after weak construction and poor manufacturing activity weighed on zinc prices in 2024, but it did not signal a strong demand rebound.

The Metalnomist Commentary

The decline in EU zinc imports shows that Europe’s refined zinc market is still being shaped by weak industrial demand rather than supply shortage. Italy’s stronger buying is notable, but the broader picture remains cautious while construction and manufacturing activity stay uneven.