Aluminium

How low-carbon and Union-origin rules could affect aluminium costs

Start with a published production-cost estimate and trace the proposed 25% qualifying share into car and construction costs.

01 · Proposed requirement

At least 25% of the total aluminium volume must be low-carbon and of qualifying Union origin

The share applies to aluminium used in covered buildings, infrastructure and civil motor vehicles.

Product requirements →
Applies inProcurement + public support

No renewable-energy auction requirement.

Low-carbon definitionStill to be specified

The emissions limits have not yet been set.

Excessive-cost thresholds25% / 30%

Procurement / public support, measured at the downstream product or procurement level.

02 · Production

Primary and secondary aluminium

Low-carbon definitions pendingThe emissions limits for primary and secondary aluminium have not yet been set.
Primary route

From bauxite

  1. Bauxite
  2. Alumina
  3. Smelting
  4. Casting + fabrication
Secondary route

From aluminium scrap

  1. Scrap
  2. Sorting
  3. Remelting
  4. Casting + fabrication
03 · Explore the model

Choose a cost estimate

Low-carbon production-cost gap

270 EUR/t

18% of the report's EUR 1,500/t conventional production cost.

Proposed volume share

Qualifying aluminium used

25 %

Meets the proposed 25% share.

Car assumptions
0.21 t
34,000 EUR
04 · Construction

A central estimate for a typical construction project

Using average aluminium use per euro of EU construction, the selected scenario adds +0.01% to total project cost — about EUR 100 per EUR 1 million, with 25% of aluminium replaced.

This estimate covers construction as a whole. It assumes a typical project uses about 1.44 tonnes of aluminium per EUR 1 million; individual buildings and infrastructure projects will vary.

Basis of the construction average

European Aluminium reports 11 million tonnes of EU aluminium demand in 2023. Applying its 22% European construction share gives 2.42 million tonnes. FIEC reports EUR 1.683 trillion of EU construction investment for 2023. Dividing the two gives the material intensity used here.

The European end-use share approximates the EU mix. This is a derived sector average, with full pass-through of the production-cost gap and other costs held fixed. It does not measure the mix of public projects separately or forecast 2030 construction spending.

As a scale check, Ramboll/CRU’s broader European construction volumes of 2.3–3.0 million tonnes produce around 0.01% under the default cost assumptions. Using FIEC’s 2024 spending figure also leaves the rounded result around 0.01%.

Calculate using a project’s quantities

Apply the selected EUR 270/t gap to your project. This assumes full pass-through; prices for profiles, sheet and castings may differ.

Enter both quantities to calculate the cost effect.

Sources

Evidence used on this page

Open a source for details.

Proposed rule

Industrial Accelerator Act

The proposed 25% share and origin requirement.

Default · 2030

E3G and ITA

18% production-cost premium and the car assumptions.

Alternative · 2035

Transport & Environment

EUR 63/t with process-emission reductions and carbon costs included.

Alternative · 2030

Commission impact assessment

EUR 292/t inferred from its vehicle example.

Method

From aluminium to final cost

The quantities and calculations behind the results.

Construction

Average aluminium use per euro

EU demand, the construction share and construction investment.

Production

Primary and recycled aluminium

The two production routes and their energy needs.