European Metal Producers Urge EU Commitment Similar to U.S. IRA

Eurometaux, the European non-ferrous metals association, has called on the European Union to follow the Biden administration’s example in rolling out financial support to help the bloc control its supply of raw materials critical for energy transition. The association, which represents European majors including Glencore, Boliden and Aurubis, said the EU should implement a similar legislation to the U.S. Inflation Reduction Act (IRA), which includes billions of dollars of subsidies to ramp up domestic investment in electric vehicles and renewable energy.

EU leaders are set to meet in Brussels next month to discuss a response to the IRA, with some pushing for a “made in Europe” approach to help bolster domestic companies. French President Macron called for an EU package amounting to 2% of its economic output to rival the $370 billion U.S. plan.

“The US Inflation Reduction Act, while discriminatory, has shown what a proactive clean tech industrial policy could look like,” Eurometaux president Mytilineos said in a letter to the European Commission. “We in Europe should be inspired by its example, and deliver more carrot and less stick to our industries, especially in today’s energy crisis.”

Eurometaux proposed five key measures to help develop the industry, including the fast-tracking of clean-energy projects and tax credits to support strategic metals production. It also reiterated calls for measures to address high electricity prices, which have led to sharp cutbacks in metals production in the region.

The association warned that the industry could further struggle in the coming years in a possible continuation of the energy shortage, despite retreating power prices in recent weeks have helped some smelters increasing output back up. It called for the EU to extend temporary state-aid measures that are set to expire at the end of the year after being introduced in response to the crisis.

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