The key role of a strategic resource

An important ally for the energetic transition

For the aluminum industry in Germany, 2024 was a year marked by few lights and many shadows. Despite some flashes of optimism, which reverberated especially in the central part of the year, the situation remains extremely tense. In the third quarter of 2024, according to data from Aluminium Deutschland, companies’ production volumes decreased again, in particular with regard to the production of semi-finished aluminum products (this type of production would have recorded the tenth consecutive quarterly decline). Among the factors that are contributing to the prolongation of this crisis, which has been going on for some time now, are the high energy costs, especially from 2022 onwards, and the bureaucratic delays, which according to many producers are compromising Germany’s competitiveness in this important sector.

Thanks to its high strength-to-weight ratio, aluminum is the second most used metal in modern society after steel. Over the next few years, as the energy transition progresses, the rates of use of this resource are expected to grow further. One of the most strategic applications for aluminum is in electric vehicles, where it is especially appreciated for the lightness it can give to vehicles. It is no coincidence that the International Aluminum Institute has already predicted that global demand for aluminum will grow by about 40% by 2030, with the consequence that the aluminum sector will have to produce about 33.3 million metric tons more of the metal in this decade.

The recyclers’ crisis

The German aluminum crisis also concerns one of the most interesting potentials of this resource, namely its recyclability. This material is, in fact, almost 100% recyclable without losing its natural characteristics. Despite these possibilities, aluminum recyclers in Germany produced 6% fewer tons of recycled aluminum from July to September, and after the first nine months of the year, production levels were 3% lower than the previous year. The production of semi-finished products is also down in 2024: in the first three quarters of 2024, about 1.8 million tons of semi-finished products were produced, down 3% from the previous year. One of the most relevant declines was in the production of aluminum extrusions, which fell 6% compared to previous measurements.

For German producers, the European institutions could play a very important role in resolving part of the aluminum crisis. In this regard, there has been no shortage of appeals addressed to the European Commission, with the request that it begin to recognize all the risks associated with trade policy. In 2023, the Community institutions took an important step forward, including aluminum among the strategic raw materials included in the Critical Raw Materials Act. Previously, the European Council had also underlined the strategic importance of this resource. With these moves, the Community institutions seem to have undertaken the first concrete initiatives aimed at increasing the centrality of this important resource, which is already playing a leading role in some technologies and infrastructures of great importance for the energy transition.