The European Union has raised concerns that MMG’s planned acquisition of Anglo American’s Brazilian nickel operations could redirect vital ferronickel supplies away from Europe — a move that may threaten the continent’s stainless steel production and weaken industrial competitiveness, according to a Reuters report.
The European Commission cautioned that any shift of ferronickel exports from European markets could undermine the region’s ability to produce high-quality, low-emission stainless steel at competitive prices. The deal, includes two ferronickel processing plants and two undeveloped nickel projects in Brazil.
EU fears supply squeeze for critical nickel
Teresa Ribera, the EU’s competition chief, emphasized that ferronickel is a critical raw material for Europe’s stainless steel sector, which underpins numerous industries — from construction and automotive to energy and technology manufacturing.
The Commission warned that reduced access to ferronickel, coupled with limited alternative supply sources, could raise production costs, compromise material quality, and erode the global competitiveness of European manufacturers.
Companies seek compromise
Both MMG and Anglo American reaffirmed their commitment to completing the transaction. To ease EU concerns, the companies have proposed a 10-year supply agreement, under which Anglo American would purchase ferronickel from MMG for continued distribution across Europe.
They described the arrangement as the “optimal outcome” for customers and the stainless steel supply chain, ensuring continuity while supporting industrial growth and sustainability goals.
A wider warning on critical minerals
The EU’s warning reflects a broader geopolitical challenge: securing reliable access to critical raw materials amid intensifying competition from China and other global players. Europe’s stainless steel producers depend heavily on stable ferronickel supplies to maintain performance standards, reduce carbon emissions, and meet the bloc’s green manufacturing and circular economy objectives.
As Brussels continues to push for strategic autonomy in raw materials, the outcome of this deal will signal how far the EU is willing to go to protect its industrial base — and whether global supply chains will bend or break under growing geopolitical pressure.
