EU must follow US Inflation Reduction Act with strong policy on critical minerals, Eurometaux says

European metal industry association Eurometaux has called on the European Commission to follow the lead shown by the Inflation Reduction Act and deliver a “powerful” policy to support the industry in the EU while it tries to keep up with the move to a new generation of energy markets

The call for a new policy came in a position paper by Eurometaux published on Wednesday January 25, in advance of a European Council special meeting on February 9-10. EU leaders will discuss any response to the Inflation Reduction Act at this meeting, the EU confirmed.

In the paper, the industry association said that any industrial plan must accompany Europe’s own Critical Raw Materials Act in providing a stronger signal on investment and competitiveness across the full clean-energy-technology supply chain.

It also urged the European Commission to follow the US in prioritizing strategic raw materials throughout the supply chain equally. It welcomed improvement in permitting and financing for new mining, processing and recycling efforts in the upcoming Critical Raw Materials Act.

“The US Inflation Reduction Act, while discriminatory, has shown what a proactive clean-tech industrial policy could look like,” Evangelos Mytilineos, president of Eurometaux and chief executive officer of Greek aluminium company Mytilineos, said in a letter to the European Commission.

“Its predictability, value-chain approach, funding and tax incentives are driving new investments into US minerals production,” he added. “We in Europe should be inspired by its example.”

Eurometaux proposed five key recommendations to support the industry. These included providing streamlined and comprehensive EU financial support for strategic supply chains, reducing EU electricity prices through the use of renewable sources, and setting EU production targets, incentives and projects, fast-tracking them for the full clean-energy-technology supply chain.

In addition, the association said that the Critical Mineral Materials list should be expanded to include aluminium, copper, zinc, high-purity manganese, neodymium, dysprosium, praseodymium, terbium, iridium, silver, germanium and others.

Want to read more on policy?

Find out more about policy changes and their impact on the market. Read our recent insights report into policy changes in the US and EU and their effect on the already volatile battery materials and electric vehicle market.

  • Discover how US and EU policies may present obstacles in the journey to a more sustainable future
  • Find out about the impact these policies have on the future of key battery materials
  • Read about how these policies are influencing the emergence of regional supply chains
  • Use our interactive visualizations to find out more information on the policies, timelines and what this means for your business

Read more

What to read next
The US trade roller coaster ride seems to be flattening, with signs of potential moderation and stability. It appears increasingly likely that our original expectation that the US Trump administration would primarily use the threat of tariffs as a negotiating strategy will be correct. While we do not expect to the US tariff position return to pre-2025 levels, we believe the overall US tariff burden is more likely to settle at around 10-30% globally rather than the elevated rates of 50-100% that seemed possible in recent weeks.
Read Fastmarkets' monthly battery raw materials market update for May 2025, focusing on raw materials including lithium, cobalt, nickel, graphite and more
The Mexico Metals Outlook 2025 conference explored challenges and opportunities in the steel, aluminum and scrap markets, focusing on tariffs, nearshoring, capacity growth and global trends.
China has launched a coordinated crackdown on the illegal export of strategic minerals under export control, such as antimony, gallium, germanium, tungsten and rare earths, the country’s Ministry of Commerce announced on Friday May 9.
Cobalt Holdings plans to acquire 6,000 tonnes of cobalt. Following their $230M London Stock Exchange listing, this move secures a key cobalt reserve. With the DRC’s export ban affecting prices, the decision reflects shifting industry dynamics
The recent US-China agreement to temporarily reduce tariffs is a major step for global trade, with tariffs on US goods entering China dropping from 125% to 10% and on Chinese goods entering the US decreasing from 145% to 30% starting May 14. While this has boosted markets and created optimism, key industries like autos and steel remain affected, leaving businesses waiting for clearer long-term trade policies.