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Jun 08, 2023

Why aluminium has its place in the EU’s list of strategic raw materials

By Anna-Michelle Asimakopoulou 25-07-2023 Opinion Advocates for ideas and draws conclusions based on the author/producer’s interpretation of facts and data. As industry sectors are at risk from

By Anna-Michelle Asimakopoulou

25-07-2023

Opinion Advocates for ideas and draws conclusions based on the author/producer’s interpretation of facts and data.

As industry sectors are at risk from China's restriction on strategic material exports, the EU should focus on the potential of aluminium. [fornStudio]

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Aluminium plays a crucial role in vital green and digital technologies like semiconductors and solar panels. It has earned its place in the strategic list of the EU’s draft Critical Raw Materials Act, writes Anna-Michelle Asimakopoulou.

Anna-Michelle Asimakopoulou is a Greek member of the European Parliament for the centre-right European People’s Party (EPP).

The EU’s Critical Raw Materials Act is reaching its final stages in the European Parliament.

Its primary aim is to reduce our dependence on single or concentrated sources of strategic materials, which are vital to building everything from electric batteries and semiconductors to solar panels and wind turbines.

These dependencies can be weaponised against us and put at risk our long-term prosperity and security.

China’s recent announcement of its plans to restrict exports of gallium and germanium is just the latest example. Vital to the construction of semiconductors, fibre optics and satellite solar cells, China’s hold over the production of these materials puts us in a vulnerable position.

To take the example of gallium, China is responsible for 94% of global output, and supplies 80% of the EU’s needs. The Commission is now looking at all options to find new supplies, and one creative solution may be found in Europe, via aluminium production.

Aluminium is produced through a number of processing stages, the last of which is to convert alumina into aluminium, and one of the by-products of this process is gallium.

There are six alumina processing plants across the EU, most notably in Greece and France, that could produce not only enough gallium for the EU, but enough to see the EU potentially become a net-exporter!

The low price of gallium, as a result of China’s hold over the product, meant that it was previously unprofitable to do so, but with prices now rising and the recent security impetus, this could soon change.

This development cuts to a crucial issue that has been under discussion as part of the negotiations of the CRM Act: which materials should be included on the Strategic List.

There has been broad consensus across the EU institutions as to the components of this list, with the exception of aluminium.

In the Commission’s original draft, and in line with its methodology, aluminium was on the list. It was cut, however, as part of a last minute political decision by the College of Commissioners.

After lengthy discussions, the Council has decided to include aluminium on the list as part of its Common Position, a decision that predates the Chinese announcement on gallium.

It is now up to the Parliament to make its final decision, and with the Committee stages all but over, there is currently no consensus to reinstate aluminium to the list. This despite many amendments from across many political groups to do so.

With the CRM Act set to be voted on at the Plenary session in September or October, however, there is still a chance to correct this mistake.

Aluminium is a key component for the production of solar panels, electric batteries, heat pumps, wind turbines and electric vehicles. To give an example, 85% of the material content of a solar panel is aluminium.

This is why there was always a strong case to include aluminium on the list in its own right.

Our emerging gallium conundrum, however, provides another incentive. European aluminium production may in fact save us, and this is something that should not be overlooked.

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