Author: Robert Břešťan, HlídacíPes.org
Primary aluminium production capacity in the European Union has dwindled to just a handful of countries. Today, China dominates as the world’s largest producer of this seemingly ubiquitous metal, while Europe remains heavily reliant on imports—including, until recently, from Russia. Now, the EU has resolved to ban Russian aluminium imports as part of its latest sanctions package, while also taking tentative steps to revive its own production.
In Slovakia, aluminium manufacturing was once a point of industrial pride. Slovalco, a company with a 70-year legacy, boasted the most environmentally friendly and modern facility of its kind in Europe. Yet even that wasn’t enough to save it. In August 2022, the plant—jointly owned by the Penta investment group and Norwegian aluminium giant Norsk Hydro—shut down operations.
“This decision is a response to soaring electricity prices and inadequate compensation, issues that Slovalco and other energy-intensive businesses in Slovakia have highlighted for over two years,” the company explained. With an annual capacity of 175,000 tonnes, Slovalco supplied aluminium to numerous European countries—a gap that has only deepened Europe’s dependence on imports from China and Russia.
Last March, however, reports surfaced that production might resume in Žiar nad Hronom. Restarting the facility, despite efforts to keep its technology operational, is a complex process that could take years. The estimated cost to reboot its 226 furnaces is around €100 million, and without subsidies to offset high electricity costs, the operation remains unprofitable.
This situation underscores a schizophrenic reality in the EU: energy-intensive yet critical industries are caught between ambitious climate goals and economic viability.
The Russian Import Dilemma
The EU’s climate policies, coupled with its emissions trading system, dealt a severe blow to aluminium plants across the bloc. The energy crisis sparked by Russia’s invasion of Ukraine in 2022 delivered the final blow, shuttering five European smelters and wiping out over one million tonnes of annual production.
Primary aluminium production is no longer profitable for EU companies. Roughly 60% of global aluminium output now comes from China, while Europe’s production has steadily declined over the past 15 years. Since then, the EU has lost 65% of its primary aluminium capacity, leaving it with a combined output of around 950,000 tonnes.
Experts predict that European demand for aluminium in clean-tech sectors—such as electric vehicles, solar energy, and electrical grids—will rise from 14 million tonnes in 2020 to 21 million tonnes by 2050. Aluminium is a staple in everyday products like pharmaceutical and food packaging, and it’s indispensable in construction, aerospace, automotive, and defense industries.
Recognizing this, the EU recently added aluminium to its list of critical raw materials, despite its initial exclusion from the Critical Raw Materials Act (CRMA). Concerns over potential shortages also explain why Russian aluminium imports—unlike those targeted by U.S. and U.K. sanctions—had remained untouched by EU restrictions until now. That’s set to change with the bloc’s 16th sanctions package, which targets Russian aluminium, currently accounting for about 6% of Europe’s imports.
If Europe, Then Norway
Primary aluminium production has nearly vanished from the EU, as the Žiar nad Hronom case illustrates. Countries like Czechia, Poland, Austria, Italy, Hungary, Bulgaria, Finland, Croatia, and Portugal no longer have any primary aluminium facilities. Spain retains one plant, but its owner, Alcoa, threatens to close the San Ciprian complex due to mounting losses. Sweden, Slovenia, and Greece each have a single facility.
France operates two smelters, with the Dunkirk plant—now the EU’s largest, producing 286,000 tonnes last year—owned by U.S.-based American Industrial Partners. Germany hosts four primary aluminium smelters: one in Hamburg and three in the Ruhr region.
By contrast, China produced over 40 million tonnes of aluminium in 2022 alone, much of it
consumed domestically amid its electric vehicle boom. India, Russia, Canada, and the United Arab Emirates round out the top producers, with no EU country even nearing the top ten.
Europe’s standout performers lie outside the EU: Iceland and, above all, Norway, the world’s seventh-largest aluminium producer.
Recycling as a Lifeline
The EU is increasingly focusing on aluminium recycling to meet demand. In Czechia, for instance, inefficient handling of aluminium beverage cans results in an estimated annual loss of 11,000 tonnes—worth roughly a quarter-billion Czech koruna (about €10 million).
In response to rising demand, Czech company Al Invest is planning a new facility in Břidličná near Bruntál. Building on a traditional factory (formerly Kovohutě Břidličná) known for aluminium foils, the firm aims to boost production and expand into aluminium semi-finished products. However, this too will rely on recycled material rather than primary production.
Europe’s aluminium story is one of decline, dependency, and a scramble for solutions. As demand soars and geopolitical tensions reshape supply chains, the EU faces a stark choice: innovate or fall further behind.
