The importance of the circular economy in addressing aluminium shortages in the EU
Growing demand for renewable energy technologies, electric vehicles and aerospace applications is expected to drive a sharp increase in aluminium demand in the EU by 2050. Yet, despite being one of the most abundant metals on Earth, aluminium is currently facing a supply crisis across the EU’s 27 Member States, with direct impacts on industrial competitiveness and climate objectives.
For this reason, the European Commission has launched a public consultation, open until 31 January 2026, aimed at addressing the insufficient availability and accessibility of secondary raw materials, in particular aluminium scrap.
The data cited by the Commission are clear: the rise in EU scrap exports is driven by global prices and distortive subsidies in some non-European countries. The result has been a sharp increase in domestic prices (+80% since 2019) and shrinking margins for European smelters and refiners. Recycling remains essential, supplying up to 43% of EU aluminium demand, but it is under strain, with postponed investments and reduced capacity.
As already highlighted by FACE in its responses to the Joint Research Centre (JRC) — which will feed into the preparatory work for the upcoming Circular Economy Act — tensions in the European scrap market stem from exports exceeding 1.2 million tonnes per year, growing shortages of high-quality material, competitive distortions between EU and non-EU operators, and a rigid cost and regulatory framework that risks weakening, rather than strengthening, the value chain. This situation is further aggravated by US tariffs of up to 50% on aluminium, with scrap remaining exempt, which increase the attractiveness of European scrap on global markets.
For FACE, a more integrated and pragmatic approach is needed to ensure aluminium scrap availability: combining targeted export measures with long-term industrial policies and concrete support for investment in recycling.
The full article by Economia Circolare is available here.
