2 In tr oduction 2 1 Introduction to project conte xt and goal This report was commissioned by Eurometaux the European nonferrous metals association It represents the industry s vision on how it can contribute to achieving climate neutrality in Europe The report profles the nonferrous metals ecosystem that the sector represents and its progress on climate mitigation and circularity It also identifes the opportunities challenges and constraints the sector faces in the transition to netzero while determining a combination of k ey solutions that will help the nonferrous metals silicon and ferroalloys sector to further reduce emissions as well as address the necessary conditions f o r e n s u r i n g that the sector remains at the forefront of the energy and industrial transformation 22 Scope This report considers the base metals silicon ferroalloys precious metals specialty metals and rare earth elements With regard to energy use and greenhouse gas GHG emissions the report focusses on the base metals silicon and ferroalloys Base Metals Aluminium copper lead nick el tin zinc silicon ferroalloys Precious metals Gold Silver Platinum P aladium Ruthenium Osmium Iridium Rhodium Specialty metals Cobalt Germanium Gallium Indium Selenium Antimony Magn e s i u m Molybdenum Cadmium Beryllium Bismuth Chromium Niobium V anadium Hafnium Lithium Manganese Rhenium T antalum T ellurium Titanium T ungsten R are earth elements Neodymium Dysprosium Scandium Cerium Erbium Europium Gadolinium Holmium L utetium Y tterbium Thulium L anthanum Praseodymium Samarium T erbium and Y ttrium 23 Methodology The report starts by presenting a coordinated profle of thenonferrous metals silicon and fer roalloys industrychapter 3 This profling aims to illuminate the delicate ecosystem that is the sector via a thorough assessment ofmetals interlink ages production in Europe trade patterns and the sector s high import reliance as well as the sector s close association to the broader economy It also sheds light on China s growing profle and its impact on the EU nonferrous industry It then highlights the essential role of thenonferrous metals silicon and ferroalloys industryin the lowcarbon economy in their quality as enablers of the green economy Chapter 4 e xplains how the sector is a price tak er on a global mark et where prices are set at the L ondon Metals Ex change The chapter frst describes the workings of the LME and provides evidence of supply and demand impact on pricing of metals e xplaining how factors that infuence the metal price at LME are outside the direct control of either producers or users Chapter 5 discusses the energy use and greenhouse as gas emissions from nonferrous metals production as well as the options for further mitigation of GHG emissions as a con tribution to the EU s goal to achieve climate neutrality by midcentury The focus will be on base metals with highest overall energy use e g aluminium copper zinc nick el silicon ferroalloys First a general overview is given of energy use in nonferrous metals produc tion and how it compares to other energy intensive industries followed by a brief overview of overall GHG emissions from nonferrous metals production in the EU Ne xt the primary and secondary production processes for aluminium copper zinc nick el silicon ferromanganese and ferrosilicon are presented together with energy use and evolution of GHG emissions This is followed by a literature study on possible new GHG mitigation options for nonferrous metal production This includes techniques to reduce direct and indirect emissions in primary production but also addresses options that can improve use of secondary raw materials in nonferrous metals production and technologies which the nonferrous metals industry can apply to assist with reduction of GHG emissions in other sectors Chapter 6 discusses the most important challenges for nonferrous metals industry from the perspective of a bellwether or frontrunner industry in particular the high electrointensity and vulnerability to rising electricity prices Other challenges include trade related issues and misalignment in the broader regulatory environment related to numerous environmen tal regulations to which nonferrous metals industry is subjected to Chapter 7 brings the fndings of previous chapters together to formulate a strategy that can enable a competitive transition to a climate neutral economy both for the nonferrous met als sector as the value chains that will depend on metals It look s at a set of fve strategic actions competitive carbon free electricity climate friendly innovations and investments nurturing future value chains circularity and industrial symbiosis assertive EU trade policies and strategic regulatory realignment The report is based on diverse sources and includes data from the nonferrous metals sil icon and ferroalloys sector as well as publicly available documents and data e g industry reports EU databases European Commission studies US and British Geological surveys project websites and media articles The research team also conducted interviews with e xperts from the various metal commodity associations and specifc companies see anne x list of contributors MET ALS IN A CLIMA TE NEUTRAL EUROPE A 2050 BL UEPRINT 18