New industry briefing highlights the economic scale, strategic importance and globally connected nature of the UK aluminium ecosystem – and calls for more joined-up Government action on trade, carbon and industrial capability.
The Aluminium Federation (ALFED) has launched a new Reindustrialising UK Aluminium briefing, developed through its Trade Committee, setting out the immediate trade and industrial priorities facing the UK aluminium sector.
The briefing comes as aluminium takes on increasing strategic importance within UK Government policy. Aluminium is recognised within the UK's Critical Minerals framework and as a Growth Mineral, reflecting its importance to future UK manufacturing and economic growth. Government's Critical Minerals Strategy describes critical minerals as foundational inputs to the Industrial Strategy's growth-driving sectors.
ALFED's latest economic modelling estimates that the UK aluminium industry supports a wider economic footprint of £8.18 billion in GVA and 104,800 FTE jobs, including £3.78 billion in direct GVA and 54,200 direct FTE jobs.
The new briefing argues that the scale of the existing industry provides a strong foundation for UK reindustrialisation – but that existing capability cannot be taken for granted.
Developed using market intelligence and insight from members of the ALFED Trade Committee, it examines the UK's position within a globally connected aluminium ecosystem, where primary metal, scrap, semi-finished products and finished goods move across international borders.
It warns that decisions around tariffs, trade remedies, carbon policy and market access can rapidly alter those flows, affecting the competitiveness of UK businesses and where future industrial activity takes place.
Nadine Bloxsome, CEO of ALFED, said: “Government has already recognised aluminium as critical to the UK's future. The question now is what we do with that recognition.
“We have a substantial aluminium industry in Britain today, supporting jobs, supply chains and strategically important sectors across the country. But we also have capability gaps and operate within a global market that is changing incredibly quickly.
“This briefing has been driven by our Trade Committee because our members are seeing those changes first-hand. Their intelligence gives us an important picture of what is happening to material flows, market access and competitiveness – often before those effects become visible in official statistics.
“Our message to Government is therefore about being involved earlier: understanding the whole aluminium ecosystem and considering trade, carbon and industrial policy together rather than in isolation.”
The briefing identifies four immediate areas for Government attention: earlier industry engagement; alignment between trade, CBAM and UK-EU policy; stronger strategic UK capability; and better alignment of industrial and procurement policy with British manufacturing.
It also connects aluminium directly with the UK's wider growth ambitions. Advanced manufacturing, clean energy, defence and digital & technologies are among the eight growth-driving sectors identified in the Modern Industrial Strategy, with aluminium playing an enabling role across many of these industries.
White Paper to follow
The Trade Committee briefing is the first stage of a wider body of work being undertaken by ALFED on UK aluminium and reindustrialisation.
Following the ALFED Business Briefing on 24 September, ALFED plans to publish its Reindustrialising UK Aluminium White Paper.
The White Paper will bring together ALFED's updated economic model with a wider evidence-led narrative on the scale, capability and strategic importance of the UK aluminium industry, providing a more detailed evidence base for engagement with Government and industry.