13 per cent of imports in Germany alone affected Blockade of the Strait of Hormuz threatens European Aluminium processing

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The war in Iran and the blockade of the Strait of Hormuz are reverberating far beyond oil markets. In addition to disruptions in energy supplies and noble gases such as helium, the crisis is now affecting a material critical to defence production: aluminium. The consequences are being felt across the European Union.

Brussels classifies both aluminium and its primary ore, bauxite, as strategic raw materials. Producers in the Gulf – typically responsible for around nine per cent of global supply – have effectively been cut off from international markets following the de facto closure of the Strait of Hormuz in the wake of US-Israeli strikes on Iran from 28 February. The chokepoint is of particular relevance to Germany: nearly 13 per cent of its 2.1 million tonnes of primary aluminium imports last year transited the waterway.

Prices have spiked

The impact on the market has been immediate. By mid-April, aluminium prices surged to a four-year high of more than $3,600 per tonne. “Availability will be so constrained that certain products may not be manufactured for a period of time,” warned Rob van Gils, president of Aluminium Deutschland, in comments to Reuters. While shipments that had already cleared the Strait are still arriving, industry expects shortages to intensify from May.

Recycling offers only limited relief at the moment

There are limited options to offset the shortfall. According to Michael Liesegang of the German Mineral Resources Agency, increased domestic recycling could provide some relief, with around 15 per cent of capacity currently unused, he told Reuters. Yet Europe exports a significant share of its aluminium scrap, leaving recyclers themselves constrained by a lack of feedstock.

Cornerstone material in the defence industry

Aluminium is valued for its low weight, corrosion resistance and ease of processing. Typically used in high-strength alloys, it combines durability with industrial scalability and is deployed across a wide range of military applications. In aviation, aluminium remains a backbone material. Fighter aircraft such as the F-16 Fighting Falcon rely on it for fuselage structures, wings and internal frameworks. Despite the rise of composites, aluminium continues to offer advantages in cost and manufacturability, particularly in transport aircraft and legacy fleets. On land, aluminium helps reduce vehicle weight while maintaining protection. Infantry fighting vehicles such as the M2 Bradley use aluminium alloys in structural elements and armour, improving mobility, range and deployability.

Key for naval applications, aviation and electronics

In naval applications, aluminium is widely used in superstructures and smaller vessels such as patrol boats, enabling higher speeds and offering strong corrosion resistance. It is also critical in missile systems and space applications, where its strength-to-weight ratio is key. The same applies to satellites, where reducing mass directly lowers launch costs. Beyond structural uses, aluminium is found in military electronics and selected ammunition components. While less prominent than rare earths, it remains a foundational material for modern armed forces – especially where weight, cost efficiency and large-scale production matter most.