The Aluminium Federation (ALFED) has written to Sarah Jones MP, to seek urgent clarification on how the UK aluminium sector will be supported under the Government’s evolving Industrial Strategy and energy policy reforms.
This follows the recent launch of the UK Aluminium Alliance, which ALFED unveiled at the House of Lords earlier this month, bringing together key producers, processors, and recyclers to drive investment, retain high-value scrap onshore, and position aluminium as a cornerstone of the UK’s clean growth and circular economy ambitions.
In the letter, ALFED welcomed the Government’s renewed industrial focus, but raised concerns that aluminium must receive equivalent and fair treatment to other strategic sectors, particularly around high industrial electricity prices and the competitiveness of UK-based manufacturing.
Key points raised with the Minister include:
- Eligibility for the Energy Intensive Industries Compensation Scheme (EIICS), particularly for downstream and midstream aluminium manufacturers who face steep energy costs but often fall outside traditional definitions of ‘EIIs’.
- The need for targeted support for strategic investment projects, such as new rolling, reprocessing or remelting capacity, which are currently being held back due to energy pricing uncertainty.
- Opportunities to explore indirect energy cost relief mechanisms, as seen in other sectors, to ensure major aluminium investment is not lost overseas.
- A call for greater prominence of aluminium within wider Industrial Strategy and Circular Economy initiatives, especially around scrap retention, low-carbon supply chains, and sovereign materials resilience.
To advance these discussions, ALFED has proposed a dedicated aluminium roundtable with DBT, DESNZ, industry leaders and investors to take place after the summer recess.
Nadine Bloxsome, CEO of ALFED, said:
“With strong investment opportunities on the table and the launch of our UK Aluminium Alliance now underway, this is a critical moment to ensure the aluminium sector is recognised and supported as a strategic industrial priority. We are urging government to work with us, not just on energy pricing, but on the long-term conditions for growth, circularity and reprocessing here in the UK.”
ALFED will continue working closely with members, government departments and industry partners to progress this dialogue and ensure the aluminium voice is strongly represented across all future policy discussions.
For more information about the UK Aluminium Alliance or to get involved, visit www.alfed.org.uk or contact us directly.
