The UK Government’s publication of its first Industrial Strategy in over a decade marks a long-awaited and meaningful step toward reshaping British manufacturing, boosting energy competitiveness, and restoring sovereign industrial capability. For ALFED and the UK aluminium sector, this is a moment that brings both cautious optimism and a renewed call for engagement.
From the outset, the lack of explicit reference to aluminium within the strategy is disappointing. The word “metal” is mentioned only once across the entire policy paper, which is striking given the foundational role aluminium plays in clean energy, low-carbon transport, defence, aerospace, and construction. As ever, our sector remains underrepresented in policymaking narratives, and that must change.
Yet there are genuine positives to build on. The announcement of the British Industry Supercharger expansion, increasing relief on electricity network charges from 60% to 90%, reflects the very advocacy ALFED has pursued for years. This relief is essential for aluminium producers and processors, where energy costs are among the most significant global competitiveness barriers.
“Energy competitiveness is a defining issue for the aluminium sector. Without decisive support, producers and processors across the UK risk becoming globally unviable. The Supercharger expansion is a major step forward, but we now need urgent clarity on who qualifies, how SMEs can benefit, and how this aligns with future emissions reporting obligations.”
— Nadine Bloxsome, CEO, ALFED
However, two major areas of uncertainty remain:
- Eligibility Criteria: It is not yet clear whether smaller aluminium producers and downstream processors, many of whom fall under SME definitions, will fully benefit from the Supercharger and related relief schemes. These businesses play a critical role in the national value chain and must not be excluded.
- Implementation Clarity: ALFED is seeking detailed guidance on how the relief measures will be applied, including how regional energy network operators and grid suppliers will implement reductions in practice and whether timelines will align with member needs.
Beyond energy, the Strategy provides signals of intent on innovation, supply chain resilience, infrastructure and skills – all areas where aluminium has a strategic role. But glaring omissions remain, particularly around:
- The UK’s own Carbon Border Adjustment Mechanism (CBAM), with no clarity on alignment with the EU scheme or whether Scope 2 emissions will be factored into policy.
- The role of secondary and midstream manufacturing, such as rolling, extrusion, and recycling – which are essential for circularity and net zero.
- The absence of any mention of materials security, ahead of the upcoming UK Critical Minerals Strategy, expected to be released in the coming weeks.
We are clear that the Critical Minerals Strategy must fill the voids left by this announcement. It must recognise aluminium as a material of sovereign and strategic importance, not just in its raw form but across the value chain – from recyclers and reprocessors to advanced alloy developers and industrial end users.
This is exactly why ALFED has launched the UK Aluminium Alliance – to bring together domestic producers, processors, OEMs, recyclers and researchers to provide data-backed insights and drive targeted advocacy at all levels of government.
“The Industrial Strategy gives us a foundation. Now we must fill in the gaps. Through the UK Aluminium Alliance, we are mapping our national capacity, building technical partnerships with OEMs, and pushing for aluminium’s full recognition as a strategic material, on par with steel, defence metals and advanced composites.”
— Nadine Bloxsome, CEO, ALFED
ALFED will host a dedicated member briefing later this summer to break down key areas of the strategy, identify near-term funding opportunities, and set out next steps for the UK Aluminium Alliance. We will also continue to work closely with Make UK and other partners to ensure our sector receives the visibility and investment it deserves.
For questions, insights or to join the UK Aluminium Alliance, contact us at: alfed@alfed.org.uk.
To learn more, please click here to read the full government report.
