Eurometaux, a non-ferrous metals industry association, has warned the European Commission that rising electricity prices could cause metal producers to move operations out of Europe, undermining the EU's carbon reduction plans.
As economies slowly emerge from the pandemic, European governments are under pressure to help stem the surge in energy costs for businesses and households, caused by a surge in global wholesale gas prices.
Eurometaux wrote in a letter to Eu Energy Commissioner Kadri Simson that "rising electricity prices have already led to power shortages and, if not addressed, could lead to further migration of our industry outside Europe."
"We are also concerned that if electricity remains too expensive, it will hamper the electrification of industry as a route to decarbonisation and undermine the EU's green deal objectives."
The European Union's goal is to reduce net greenhouse gas emissions by 55 percent from 1990 levels by 2030, a step toward net zero emissions by 2050.
Eurometaux says non-ferrous metals such as aluminium, copper, nickel and silicon use more electricity to produce than any other material.
Eurometaux's members include Norsk Hydro, Boliden, Eramet, Rio Tinto, Umicorel and Nyrstar.
"Green trading value chains will require more of these metals, such as batteries, electric vehicles, wind turbines, solar panels and grid infrastructure."
The Commission confirmed receipt of the letter and said it would respond in due course.
Nyrstar said last week it had cut zinc production at its Dutch zinc smelters because of higher electricity prices in Europe.
