The German aluminium industry is still experiencing weak growth. Production data for the 3rd quarter of 2025 show Europe's most important aluminium location has been shrinking since 2021, driven by policy failures, structural change and a persistently weak economy.
Current production levels are only between 76.5% and 87% compared to 2021, leaving capacities significantly underutilised. According to a member survey by Aluminium Deutschland e. V. 28 per cent of companies plan to cut jobs or have already started, while a further 13 per cent are considering relocating production abroad.
„The situation in the aluminium industry is dramatic! In order to survive, companies must reorganise themselves: Capacity cuts, relocations and job cuts cannot be ruled out as measures. Well-paid industrial jobs are at stake. If the industry is not strengthened by politicians, this will also result in a loss of prosperity in Germany.“
Rob van Gils, AD President
Slight increase in recycling
Aluminium recycling showed the most stable development in the third quarter of 2025. From July to September, companies produced just under 695,000 tonnes of aluminium (+2 %). Nevertheless, at around 2.1 million tonnes, the production level for the first nine months is slightly below the previous year's figure (-1 %) and around 15 per cent below the 2021 level. The main obstacles are the weak demand from customer industries and a shortage of aluminium scrap.
Production of aluminium semis remained stable in the third quarter of 2025 at around 593,000 tonnes (+/- 0 %). In the first three quarters, total production amounted to around 1.8 million tonnes (+1 %).
In addition to weak growth in key sectors such as mechanical engineering and the automotive industry, German factories are also suffering from poor economic policy conditions in Germany. Companies do not expect a significant improvement in the short term. Less than a third of companies expect positive effects from the recent cabinet decisions to reduce electricity costs. On 1 January 2026, the introduction of the European CO2 border adjustment system CBAM also threatens to increase costs further.
Permanent loss of well-paid industrial jobs looms
The German aluminium industry has built up employment again since 2021 and exceeded pre-COVID-19 pandemic levels in 2024. Companies are increasingly focussing on retaining their employees. However, the pressure is growing: according to the Aluminium Deutschland e. V. member survey, 28% of companies have to Reduce capacities in Germany, Another three per cent are initiating production shutdowns in Germany.
„Politics is in demand: competitive framework conditions are essential. Industrial and energy policy, climate policy, trade defence instruments - there is an urgent need for action here. Without decisive political support, Germany is at risk of losing its importance as an industrial centre in the long term. A strong industry and the well-paid jobs associated with it are needed to ensure lasting prosperity.“
Angelika El-Noshokaty, AD Managing Director
Source: Aluminium Germany
