Posted on 20 Nov 2025
Campaign group Transport & Environment (T&E) on Monday suggested that using green aluminium would only add €25 ($29) to the price of a car in Europe in 2020, Kallanish reports.
The group claims the region can deliver “cost-competitive” decarbonised aluminium by 2040 and potentially a saving of €30 on the price of a car by 2050. Citing a new study modelling aluminium production costs based on an electrified pathway (with electric boilers and furnaces), T&E says the premium per tonne would peak at around €60 in 2035.
Although a detailed breakdown on the modelling has not been provided, the group says the MPP Aluminium model includes material costs, capex/opex, labour and energy use. It estimates that by 2035, “a typical electrified plant” would produce primary aluminium with 3 tonnes CO2equivalent per tonne of aluminium, compared to the 4.5 t CO2e/t for primary production today.
Aluminium, used in the chassis, battery and other parts of the vehicles, is responsible for around 20% of an EV’s carbon footprint. With the shift to make EVs lighter, demand for the metal is forecast to surge in the coming years. Its content in an average passenger car has nearly doubled from 121 kg in 2025 to 229 kg in 2025. T&E expects the content in an average BEV to reach 275 kg in 2035. Land Rover’s Range Rover Sport already features 700 kg of aluminium.
“Europe’s comparatively clean power grid means it’s poised to lead the world in this technology, but it won’t happen without mobilising one of the biggest consumers of aluminium, the auto industry,” says Michael Carron, battery and materials researcher at T&E. “Smart targets and local content requirements can help unleash this potential.”
According to the report, with 20 operational and nine closed smelters, Europe imports more than half of its primary aluminium consumption. At the same time, the EU scrap aluminium exports are rising, with shipments hitting $2.4 billion last year. “Historically, this has mostly benefitted China, which subsidises its aluminium recycling industry, making European recyclers less competitive,” it adds.
Moreover, T&E argues that the increasing carbon cost burden on conventional aluminium can drive the decarbonisation of the sector. It estimates that the carbon cost of unabated aluminium will increase from €578/t in 2035 to €741/t in 2050.
Yet, more action will be needed to support the shift in the industry. The group recommend the EU to set minimum green aluminium quotas for new cars, with material made in the EU. Minimum green aluminium content in new cars should start at 60% from 2035, increase to 85% in 2040 and 95% in 2045. By 2050, all aluminium used in cars should be green.
Other recommendations include recycled, local content targets; support for scaling up green aluminium production through the Industrial Accelerator Act and Industrial Decarbonisation Bank; introduction of carbon labels for both aluminium and vehicles; limit scrap exports outside of the EU; and alleviate barriers to high quality recycling of aluminium.
Source:Kallanish
