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Report, Policy Paper | Low-emission materials for the Czech automotive industry

The Czech automotive industry remains one of Europe’s strongest, producing 1.45 million cars in 2024 and accounting for 12.7 percent of EU output, with more than 90 percent destined for export. This high level of integration into European and global supply chains creates both opportunities and vulnerabilities, especially given Czechia’s dependence on imported aluminium, battery materials and automotive-grade steel, and its reliance on German demand and Chinese supply. Our estimates show that the sector’s material needs already reach around 260 kt of aluminium, 1.4 Mt of steel and 20 GWh of Li-ion batteries per year, and will increase further as electric vehicles approach a 60 percent share of production by 2030. Meeting this demand will require more than rising imports. It will depend on a functioning domestic market for high-quality scrap, progress on battery recycling and strategic investment in low-carbon materials. Upcoming EU regulations, including the ELVR, Battery Regulation, CRMA, CBAM and ESPR, will raise the standards for circularity and secondary material use, but Czechia still lacks a strategy to align with these requirements. Without clearer policy direction and investment in modern recycling and sorting infrastructure, the country risks increasing its reliance on high-carbon imports despite having significant potential to recover valuable materials at home.

Articles and Publications

31. October 2025