The need for even bolder decisions from Europe in order to strengthen its industrial base and domestic metals, since commitments and announced policies on their own, although in the right direction, are not enough, was once again stressed yesterday by Evangelos Mytilineos, once again bringing up the example of energy.
“If European industry continues to pay significantly higher electricity costs than its global competitors, then capital, jobs and innovation will gradually move elsewhere. We already see this happening to some extent. Competitive, secure and reliable energy should be treated as industrial infrastructure, just like ports, electricity grids and transport networks”, he said characteristically.
Speaking at the ceremony for the handover at the helm of European Metals held at the offices of Metlen, its head noted that indeed Europe is not where it was a few years ago, it appears to be beginning to understand the importance of critical metals and that they are the foundation for defense, semiconductors, batteries, AI and every strategic value chain. But the biggest challenge for industry remains energy.
This very competitive disadvantage of Europe and investment gap also due to energy costs, is not unrelated to the continuously swelling trade balance deficit vis-à-vis China. “This deficit has reached 1 billion euros per day, an enormous and inconceivable figure that also shows the urgent need to reduce energy prices,” said for his part the Director General of European Metalls James Watson, setting as the number one targets the reduction of taxes and charges burdening bills.
How much all this is connected with Europe’s difficulty in developing strategic industrial projects is reflected in the ability of European businesses to absorb rare metals, such as those prioritized by the Critical Raw Materials Act for securing Europe’s supply of critical raw materials, reducing dependence on China.
The head of Metlen cited as an example gallium. At a time when the machines at Aluminium’s facilities are running at full speed, first production is expected in 2027 and the achievement of the target of 50 tons annually is placed within 2028, the messages the group is receiving are that the greatest demand comes from Japan. Secondly from the US and thirdly from South Korea. Europe comes 4th in the order of demand.
“Why is this happening? Because gallium is unfortunately used in very advanced technological applications and Europe does not need so much gallium unlike Japan,” said Ev. Mytilineos, implying Europe’s technological lag.
As European industry lags significantly in cutting-edge technologies and the semiconductor market internationally - of which gallium is a key component - as well as other sectors leading global innovation, is dominated by players coming from the US, Taiwan and South Korea.
“We started making the investment in gallium to cover Europe’s needs. In the end we may not have European customers,” said the head of Metlen, speaking about the very long road Europe still has ahead of it in order to reach the point of producing innovative products that will dominate international markets.
Europe’s important but slow steps of progress
The above does not mean that in recent years the bloc of the “27” has not made steps of progress, as also shown by the central place metals have taken in the public dialogue as a prerequisite for its competitiveness and its very strategic independence.
“If there is one small thing I am proud of in this presidency, it is my tiny contribution to changing the Commission’s view a little,” said Ev. Mytilineos about the four years of his term at the helm of European Metals, which he handed over yesterday to his successor, Belgian Inge Hofken.
The messages that both at the European level, with initiatives such as the Steel and Metals Action Plan and the Critical Raw Materials Act, and in Greece, policymakers are following a more comprehensive approach to industry and critical raw materials, which a few years ago were a specialized policy discussion, are real.
Four years ago, as he himself recalled, the world was completely different, the Trump factor did not exist, while defense, economic security and industrial resilience had not yet become decisive factors of the European agenda.
Back then the problem, as he said, was recognizing the importance of metals. Now, the challenge is the implementation of the - in a positive direction - policies announced by the Commission, that is, for Europe to learn that industrial competitiveness is not built through isolated forces.
“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 together”, noted the head of Metlen.