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The EU is set to impose a fee on exports of aluminium scrap to prevent valuable metal heading to the US and Asia, as waste materials emerge as a new battleground in a global fight for resources.
The plan to charge a 15 per cent levy would be the first time that Brussels has put charges on goods exiting the bloc. The fees should come into force on September 9, according to two people familiar with the matter.
EU aluminium producers say they are being outbid as overseas smelters making bigger profits can afford to pay more to buy scrap in Europe, melt it into fresh metal and export it back to the bloc.
They say the EU needs to retain the ability to produce the metal used in many green technologies and weapons, as the US and China expand their quest for raw materials by buying mines and striking deals in other countries.
The US imposes 50 per cent tariffs on finished aluminium imports but waives these for scrap metal.
In recent months, the demand for EU scrap has increased as the closure of the Strait of Hormuz has reduced exports from the Gulf.
European Aluminium, which represents producers, said EU aluminium scrap exports hit a record 1.27mn tonnes in 2025, up about 50 per cent since 2019, with most going to India and China.
The price per tonne has jumped by half since October, from €1,500 to €2,240, according to data provider Fastmarkets.
But the price of aluminium has risen less slowly, from about €2,700 to €3,150, squeezing margins. EU producers also have far higher energy costs than their rivals.
European trade commissioner Maroš Šefčovič promised to take action by June, but there has been fierce opposition to restrictions from scrap dealers.
FEAD, a global lobby group for the waste industry, warned in January that any restrictions on scrap sales would put the industry at an unfair disadvantage and hamper the circular economy “in the EU and globally”.
“In order to flourish and contribute to the EU’s environmental objectives, competitiveness and economic security, the European waste management industry requires strong and stable domestic demand of recycled materials,” it added.
But Paul Voss, director-general of European Aluminium, said: “European industry deserves the opportunity to compete in a game that isn’t rigged. This groundbreaking measure is an important demonstration of the Commission’s growing determination to do what it takes to defend Europe’s interests in a world that has fundamentally and irreversibly changed.”
European aluminium producers have invested heavily in recycling plants, partly to cut carbon emissions. But an estimated 15 per cent of EU recycling furnace capacity is unused because they cannot afford to buy enough scrap.
The scrap shortfall is about 2mn tonnes a year, according to European Aluminium. The sector has annual revenue of €40bn, directly employs 250,000 people and supports a further 1mn jobs in Europe.
The September proposal must be approved by a weighted majority of member states. It would also consider how to implement a proposed ban on exports of rare earth magnets, according to one of the people.
Manufacturing of rare earth magnets, which are used in wind turbines, electric vehicles and other green technology manufacturing, is dominated by China. At times, Beijing has banned or restricted their export, so the EU wants to recycle the ones it has into new magnets to reduce dependency.
The European Commission has not yet responded to a request to comment.
