Europe’s industrial metals system is shifting focus toward smelting and refining capacity as critical infrastructure, with plants that process concentrates, scrap, residues and by-products increasingly positioned at the centre of raw material security policy. These facilities produce copper cathodes, aluminium wire rod, zinc, lead, nickel intermediates, cobalt chemicals, sulphuric acid, indium and gallium, forming a core layer of Europe’s industrial metals supply chain.
The reclassification comes as Europe’s broader critical minerals strategy faces constraints in upstream mining development timelines, with smelters and refineries already embedded in industrial networks through grid connections, environmental permits, logistics systems and skilled workforces.
Structural Decline in European Smelting Capacity
Trafigura chief executive Richard Holtum stated at the EIT RawMaterials Summit in Brussels that Europe has lost around 30% of its smelting capacity over the past decade. The sector continues to face pressure from high electricity prices, carbon costs, labour expenses and competition from state-supported producers outside Europe.
Smelters operate between volatile concentrate markets and price-sensitive downstream industries, with profitability influenced by treatment and refining charges, energy contracts, by-product credits and carbon compliance costs. These combined pressures have increased financial fragility across several European metallurgical operations.
Aurubis Copper Expansion and Recycling Integration
Aurubis AG, headquartered in Hamburg, remains Europe’s largest copper producer and one of the world’s largest copper recyclers, with operations in Hamburg, Pirdop (Bulgaria), Olen (Belgium), Lünen (Germany), Beerse (Belgium) and other sites.
In the 2024/25 financial year, Aurubis reported €355mn operating earnings before tax, down 14% year-on-year, alongside €589mn operating EBITDA and €18.17bn revenue, impacted by lower concentrate throughput, reduced treatment and refining charges, ramp-up costs and depreciation.
Aurubis is expanding its Bulgarian operations at Pirdop, including a copper electrolysis expansion targeting a 50% increase in cathode output to around 340,000 tonnes per year. The broader investment programme is valued at approximately €400mn, including tankhouse expansion and solar capacity additions.
A memorandum of understanding with Aurubis AG provides for offtake of about 50% of Viscaria copper concentrate output over an initial eight-year period, linking European mining supply directly into regional smelting capacity.
Boliden Smelting and Recycling Capacity Expansion
Boliden operates smelting and recycling assets across Sweden, Norway and Finland, including Rönnskär, Odda, Harjavalta, Kokkola and Bergsöe.
At the Rönnskär copper smelter in Sweden, Boliden is rebuilding capacity after a 2023 fire destroyed its electrolysis plant. The company has committed SEK 4.8bn to construct a new tankhouse with capacity of around 230,000 tonnes per year, with full recovery expected in the second half of 2026. Rönnskär processes copper concentrates, precious metals and electronic waste.
At the Odda zinc smelter in Norway, Boliden is increasing capacity from 200,000 tonnes to 350,000 tonnes per year under the Green Zinc Odda expansion. The project is supported by a €100mn Nordic Investment Bank loan and is designed to reduce carbon intensity by approximately 15%.
Aluminium Production Under Energy Cost Pressure
Europe has lost around 30% of primary aluminium production capacity since 2008, with additional curtailments during the energy crisis following Russia’s invasion of Ukraine.
Slovalco in Slovakia, with a capacity of 175,000 tonnes per year, ceased primary aluminium production due to high electricity costs and weak market conditions.
TRIMET reduced output by more than 50% during the energy crisis before beginning partial reactivation in Germany and France. Alcoa’s San Ciprián smelter in Spain continues its restart process, with completion targeted for mid-2026 and estimated 2025 losses of $90mn–$110mn linked to delays and energy conditions.
Hydro Aluminium and Low-Carbon Supply Contracts
Norsk Hydro operates hydropower-backed aluminium smelting in Norway, which accounts for approximately 40% of Europe’s aluminium production.
Hydro has signed a long-term supply agreement with NKT valued at about €1bn, covering approximately 274,000 tonnes of low-carbon aluminium wire rod between 2026 and 2033. The company reports emissions intensity below 4 tonnes of CO₂ per tonne of aluminium, roughly 25% of the global industry average.
Hydro is also investing NOK 1.65bn (~$156mn) in a new wire rod casthouse at Karmøy with capacity of 110,000 tonnes per year, scheduled for completion in Q1 2028.
Zinc and Lead Smelting Operations in Transition
Nyrstar, controlled by Trafigura, operates smelters in Balen (Belgium), Budel (Netherlands) and Auby (France). The Budel zinc smelter was placed on care and maintenance in January 2024 due to high energy costs, then restarted at reduced capacity in May 2024 following improved market conditions and temporary cost support measures in the Netherlands. The Auby smelter in France produces indium as a by-product, used in semiconductors, displays, photovoltaics and electronics.
By-Product Recovery and Minor Metals Output
European smelting operations generate strategic by-products including indium, gallium, germanium, antimony and other minor metals recovered from zinc, aluminium and copper processing streams.
METLEN Energy & Metals (Greece) is developing an integrated bauxite-to-aluminium project supported by €90mn European Investment Bank financing and a broader investment programme of approximately €295.5mn. The project targets 2mn tonnes per year of bauxite, 1.265mn tonnes per year of alumina and around 50 tonnes per year of gallium by 2028.
Umicore and Circular Metals Processing
Umicore operates the Hoboken site in Belgium, a major precious metals recycling facility processing industrial residues, e-waste and complex materials.
The company also operates cobalt refining capacity in Finland through its Kokkola platform, supporting battery material supply chains and industrial precursor production, while continuing to manage battery-material investments amid shifting demand conditions.
Glencore Portovesme Industrial Conversion Hub
The Portovesme complex in Sardinia, controlled by Glencore, is positioned as a potential European hub for battery recycling and critical raw materials processing.
Earlier development concepts included large-scale processing of black mass with recovery of lithium, nickel, cobalt, copper and manganese, supported by existing metallurgical infrastructure and port access.
Smelting as Strategic Industrial Infrastructure
European smelting and refining assets such as Aurubis Pirdop, Boliden Rönnskär, Boliden Odda, Hydro Karmøy, Nyrstar Auby, Nyrstar Balen, METLEN Aluminium operations, Umicore Hoboken and Glencore Portovesme form integrated industrial nodes connecting mining, recycling and downstream manufacturing.
These facilities supply key metals for electricity grids, industrial electrification, transport systems and defence manufacturing, including aluminium, copper, zinc, nickel, lead, indium, gallium and other critical minor metals.
Smelting infrastructure is increasingly positioned as a central component of Europe’s industrial metals system, linking raw material inputs to downstream energy, infrastructure and manufacturing demand.
