The need for even bolder decisions from Europe to strengthen its industrial base and domestic metals sector—since commitments and announced policies alone, though a step in the right direction, are not enough.
“If European industry continues to pay significantly higher electricity costs than its global competitors, then capital, jobs, and innovation will gradually shift elsewhere. We are already seeing this happen to some extent. Competitive, secure, and reliable energy should be treated as industrial infrastructure, just like ports, electricity grids, and transportation networks,” he noted.
Speaking at the ceremony marking the change of leadership at European Metals, held at Metlen’s offices, the organization’s head noted that while Europe is indeed not where it was a few years ago, it is beginning to realize the importance of critical metals and that they form the foundation for defense, semiconductors, batteries, AI, and every strategic value chain. But the biggest challenge for the industry remains energy.
It is precisely this competitive disadvantage for Europe—and the resulting investment gap, partly due to energy costs—that is linked to the ever-widening trade deficit with China. “This deficit has reached 1 billion euros per day—an unimaginable and staggering figure that underscores the urgent need to reduce energy prices,” said James Watson, Deputy Director of European Metalls, setting the reduction of taxes and fees on utility bills as the top priority.
The extent to which all of this is linked to Europe’s difficulty in developing strategic industrial projects is reflected in the ability of European companies to source rare metals, such as those specified in the Critical Raw Materials Act, which aims to secure Europe’s supply of critical raw materials and reduce dependence on China.
The head of Metlen cited gallium as an example. At a time when the machines at Alumino’s facilities are running at full capacity, initial production is expected in 2027, and the target of 50 metric tons per year is set for 2028; the feedback the group is receiving indicates that the greatest demand comes from Japan. Second is the U.S., and third is South Korea. Europe ranks fourth in terms of demand.
“Why is this happening? Because, unfortunately, gallium is used in very advanced technological applications, and Europe does not need as much gallium as Japan does,” said Ev. Mytilineos, implying Europe’s technological lag.
Since European industry lags significantly behind in cutting-edge technologies, the global semiconductor market—in which gallium is a key component—as well as other sectors at the forefront of global innovation, is dominated by players from the U.S., Taiwan, and South Korea.
“We began investing in gallium to meet Europe’s needs. In the end, we may not even have European customers,” said the head of Metlen, referring to the very long road ahead for Europe to produce innovative products that will dominate international markets.
Europe’s Significant but Slow Steps Forward
This does not mean that the “27” bloc has not made progress in recent years, as evidenced by the central role that metals have taken in public discourse as a prerequisite for its competitiveness and its very strategy of independence.
“If there is one small thing I am proud of during this presidency, it is my tiny contribution to shifting the Commission’s perspective just a little,” said Ev.Mytilineos said regarding his four-year tenure at the helm of European Metals, which he handed over yesterday to his successor, Belgian Inge Hofken.
Signs indicate that both at the European level—through initiatives such as the Steel and Metals Action Plan and the Critical Raw Materials Act—and in Greece, policy makers are adopting a more comprehensive approach to the industry and critical raw materials—topics that, just a few years ago, were the subject of a highly specialized policy debate—are very real.
Four years ago, as he recalled, the world was completely different; the “Trump factor” did not exist, and defense, economic security, and industrial resilience had not yet become defining factors on the European agenda.
Back then, he said, the problem was recognizing the importance of metals. Now, the challenge is to implement the policies—which are a step in the right direction—announced by the Commission, namely for Europe to learn that industrial competitiveness is not built through isolated efforts.
“Industry does not operate in silos. An investment decision does not distinguish between industrial policy, energy policy, climate policy, trade policy, or competition policy. It takes them all into account,” noted the head of Metlen.