German Aluminium Industry Faces Structural Crisis, Aluminium Deutschland Warns
Aluminium Deutschland, the German aluminium industry association, has issued a sharp assessment warning that the sector is facing a severe structural crisis driven by soaring energy costs, weak demand, and raw material shortages.
Energy remains the most critical challenge. Electricity accounts for 30‑45% of aluminium production costs, and current power prices in Germany and Europe are far higher than in the United States or China. That gap has dramatically eroded the global competitiveness of domestic smelters, pushing many to reduce output or consider permanent closures.
At the same time, demand from key downstream sectors – automotive, construction, and mechanical engineering – has remained weak due to broader economic headwinds. As a result, production capacity is significantly underutilized, while supply chain bottlenecks and fluctuating availability of scrap aluminium add further uncertainty.
To prevent deindustrialisation and carbon leakage, Aluminium Deutschland is calling for a “better framework” from both the German government and the EU. Its top demand is a long‑term mechanism that guarantees globally competitive energy prices for decarbonised electricity. The association also urges stronger policies to boost secondary aluminium production and use, noting that recycling consumes only about 5% of the energy needed for primary aluminium.
Finally, the industry appeals for a reduction of regulatory and tax burdens. Aluminium Deutschland argues that without a fair business environment, many production facilities will not survive the energy transition. The association warns that action is needed now to keep essential aluminium value chains in Germany.
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