Europe is shifting its critical raw-materials strategy from policy recognition toward expanding actual mining, processing, refining and recycling capacity. Energy costs, carbon regulation, financing and permitting remain central to the competitiveness of European metals production. The shift was highlighted by Evangelos Mytilineos, executive chairman of METLEN Energy & Metals, as he completed two terms as president of the industry association formerly known as Eurometaux, renamed European Metals in 2026. Inge Hofkens, chief operating officer for multimetal recycling at Aurubis, became president on July 1, 2026.
Europe’s metals industry has already lost significant capacity during the energy crisis. Around half of European primary aluminium capacity was curtailed or shut down, with more than 900,000 tonnes of production halted or reduced. Industrial gas and electricity prices remain commonly two to four times higher than those faced by the EU’s main trading partners.
Critical raw-material targets
The Critical Raw Materials Act, effective since May 2024, sets 2030 targets for the EU to extract 10%, process 40% and recycle 25% of its annual strategic raw-material consumption. It also seeks to limit dependence on any single third country to 65% at a relevant processing stage.
The European Commission selected 47 Strategic Projects inside the EU and 13 projects outside the EU in 2025, covering extraction, refining, processing, recycling and material substitution. A second selection followed in 2026. These measures form part of a wider framework that includes the Clean Industrial Deal, Steel and Metals Action Plan, Affordable Energy Action Plan, RESourceEU Action Plan, state-aid rules and the proposed Industrial Accelerator Act. The Clean Industrial Deal envisages more than €100 billion for European clean manufacturing.
Mining, refining and aluminium projects
METLEN is developing a €295.5 million programme in Greece linking bauxite mining, alumina refining and gallium production. The project targets annual alumina capacity of 1.265 million tonnes, bauxite production of about 2 million tonnes and 50 tonnes of gallium annually.
On July 29, 2026, METLEN announced a long-term agreement covering approximately 25% of planned gallium output with a US technology customer. Gallium is used in semiconductors, telecommunications, high-frequency electronics, renewable-energy equipment and defence systems. In Slovakia, Slovalco plans to invest €100 million to restart 75,000 tonnes of curtailed annual aluminium capacity and support more than 200 jobs. Production is expected to resume in the fourth quarter of 2026, subject to European Commission approval of Slovakia’s revised indirect-carbon-cost compensation scheme.
Recycling and industrial power
Aurubis has invested €190 million in its Complex Recycling Hamburg facility for processing complex recycling materials and intermediates. The company also secured a €200 million European Investment Bank loan in 2025 for recycling and copper-production investments.
The EU is targeting a 24% circular-material-use rate by 2030 while considering measures to retain more aluminium, copper and steel scrap within Europe. Energy remains a major constraint for both primary and secondary metals production. The Affordable Energy Action Plan supports power-purchase agreements, lower levies, improved network tariffs, renewable deployment and interconnection. The European Investment Bank has also created a €500 million counter-guarantee facility for industrial power-purchase agreements. For energy-intensive plants, renewable contracts must also address balancing, grid capacity, network charges and periods when renewable generation is unavailable.
Carbon costs and European competitiveness
The Carbon Border Adjustment Mechanism (CBAM) entered its definitive phase on January 1, 2026, covering imported iron and steel, aluminium, cement, fertilisers, hydrogen and electricity. EU ETS free allocation for covered products is being phased out between 2026 and 2034. In June 2026, the Council agreed its position on extending CBAM to selected downstream products and strengthening anti-circumvention rules. The Commission has also introduced temporary support for European producers exposed to carbon-leakage risks when exporting to markets without comparable carbon costs.
The proposed Industrial Accelerator Act would introduce European-origin and low-carbon criteria for public procurement and support schemes covering sectors including steel, aluminium, cement, automotive manufacturing and net-zero technologies.
Financing and permitting
Strategic-project status can improve permitting and access to public finance, but projects still require geological certainty, competitive power, processing technology, infrastructure, offtake and environmental approvals.
EU financing instruments include European Investment Bank loans, InvestEU guarantees and Innovation Fund support. Project preparation also needs to address water, biodiversity, waste management, logistics, community engagement and technical development. Europe’s metals strategy is increasingly focused on delivering operating capacity through new mines, refining facilities, recycling plants, restarted smelters and long-term industrial power and offtake agreements.
