Metal industry urges EU to invest in processing energy transition materials

Albion Resources

07/09/2023 05:00

LONDON, Sept 7 (Reuters) - Metal producers and consumers
urged the European Union to invest more in expanding processing
capacity for minerals critical to the energy transition, such as
those used in electric vehicles, as the bloc finalises its plans
for the year ahead.
    In a letter sent to EU Commission President Ursula von der
Leyen on Thursday, industry association Eurometaux said the EU
Innovation Fund, which focuses on the decarbonisation of energy
intensive industries, should also include critical minerals.
    Von der Leyen's State of the Union address next week will
outline priorities and initiatives for the year to come.
    "Today China controls not only large shares of cleantech
manufacturing, but also 50-90% of the critical minerals
processing capacity needed for those, as well as many global
resources," Eurometaux said.
    "The US is fast catching up with its mammoth investment
package under the Inflation Reduction Act, while Europe's
investment climate has been further worsened from the ongoing
Ukraine conflict."
    The letter was signed by companies including Rio Tinto
 RIO.L  Norsk Hydro  NHY.OL , Albemarle  ALB.N , Umicore
 UMI.BR , Northvolt, Solvay  SOLB.BR  and Aurubis  NAFG.DE .
    It said the EU Innovation Fund could support the processing
of critical minerals by replicating the model of the EU's
Hydrogen Bank, which was created to help with the cost
differences between renewable hydrogen and fossil fuels.
    The EU's Strategic Technologies for Europe Platform, set up
to boost investments in clean technology, "is neither sufficient
nor targeted enough", Eurometaux said.
    "Crucially, it lacks focus on the critical minerals value
chain, failing to provide new, long-term and targeted support to
scale conversion, processing ... and refining operations," the
letter said.
    

 (Reporting by Pratima Desai; editing by Philippa Fletcher)
 ((pratima.desai@thomsonreuters.com; +44 207 513 5681;))