Press release | Low-emission Materials for the Czech Automotive Industry

The project “Low-emission Materials for Czech Automotive” is EUROPEUM’s fifth initiative focused on decarbonizing the automotive industry. In 2024/2025, the project aimed to improve understanding of material flows and identify obstacles to enhancing the secondary use of materials.

The Czech automotive industry remains strong despite the challenges faced by European car manufacturers. In 2024, a record 1.45 million vehicles were produced in the Czech Republic, representing nearly 13% of total EU production. The Czech Republic is also the 6th largest exporter of passenger cars in the world and the 8th largest exporter of battery electric vehicles (BEVs). In 2024, Czech automotive exports exceeded €50 billion, while imports reached €20 billion.

The Czech Republic is firmly integrated into European supply chains, with Germany as its largest trading partner and Poland, Hungary, and Slovakia as other key partners for much of the automotive output. South Korea is also a major supplier of automotive parts due to Hyundai’s presence in the Czech Republic. China is the largest supplier of lithium batteries and increasingly of automotive components.

Estimates suggest that in 2024, the Czech automotive sector demanded approximately 260,000 tons of aluminum, 1.4 million tons of steel, and 20 GWh of lithium-ion batteries, corresponding to about 18,400 tons of critical raw materials (lithium, nickel, manganese, and cobalt). In the future, demand for aluminum and critical materials is expected to rise significantly, while steel consumption will remain relatively stable.

“In our 2030 model scenario, where electric vehicles account for 60% of production, automakers will demand around 340,000 tons of aluminum, 1.3 million tons of steel, and up to 46 GWh of batteries for direct use in electric vehicles. Škoda Auto also produces battery systems for other brands within the VW Group, so battery demand could be up to twice as high. The exact share of EV production in 2030—whether 40, 50, or 60%—is not critical; our goal was to highlight the growing demand for specific types of materials in the Czech context.”
Filip Křenek, Project Coordinator and Analyst, EUROPEUM Institute

Domestic steel production reaches 2.4 million tons, with roughly one-third directed to the automotive industry. The Czech Republic is not a primary aluminum producer, so at least part of the demand must be met through imports. There are plans for two critical raw material mining projects, but production has not yet started. Secondary material production can reduce the Czech Republic’s dependence on imports, but it requires a fully functioning scrap market, where automotive-grade aluminum and steel scrap is recycled separately to avoid contamination and material degradation. Battery recycling will also help reduce reliance on critical raw materials, which remain scarce in Europe.

A range of European initiatives focus on circularity in the automotive industry. Secondary production not only reduces emissions but also helps retain strategic materials in Europe. However, the Czech Republic still lacks a clear strategy to ensure low-carbon inputs, and secondary material policies lack concrete steps for steel, aluminum, and battery value chains. Well-designed strategies alone are not enough to create closed-loop material recycling systems; closer collaboration between automakers, recyclers, and steel producers is also crucial.

Infographics for the project available for download here: