Norwegian Ministry of Climate and Environment concludes in favour of Elkem in EU ETS free emission allowances allocation complaint

09 Jul 2025 08:00 CEST

Oslo, Norway - 9 July 2025

Elkem ASA has been informed that the Norwegian Ministry of Climate and
Environment (KLD) has concluded that Norwegian silicon, ferrosilicon and
manganese producers were unequally treated compared to European Union producers
in the allocation of free emission allowances under the EU Emissions Trading
System (EU ETS) by the Norwegian authorities for the period 2021-2025. The case
has been sent to the Norwegian Environment Agency (Miljødirektoratet) to be
processed anew.

The Norwegian Environment Agency will re-evaluate the case to ensure that the
allowance allocation process is based on the same interpretation of the EU
regulations as that being applied by other EU countries.

Under the EU ETS, industrial installations considered to be at significant risk
of carbon leakage receive free allowances to support their competitiveness.
Carbon leakage refers to the situation that may occur if, for reasons of costs
related to climate policies, businesses were to transfer production to other
countries with lower emission constraints. This could lead to an increase in
their total emissions. For the period 2021-2025, certain industrial
installations in Norway, including Elkem's five silicon products plants, were
allocated free emission allowances at approximately 72 percent of the historical
emissions, while EU counterparties received approximately 94 percent.

"Elkem's complaint highlights the disparities in allowance allocations that have
affected the competitiveness of Norwegian metal companies compared to their
counterparts in other EU countries. The support from the Norwegian Ministry of
Climate and Environment underscores the importance of fair and equitable
treatment in the allocation of allowances, which is crucial for maintaining a
level playing field in the industry," says Inge A. Grubben-Strømnes, SVP Elkem
Silicon Products.

Based on Elkem's understanding, the letter from the Norwegian Ministry of
Climate and Environment implies that Elkem will receive approximately 1.3
million additional free emission allowances for the period 2021-2025.

For further information, please contact:
Odd-Geir Lyngstad
VP Finance & Investor Relations
Tel: +47 976 72 806
Email: odd-geir.lyngstad@elkem.com

Marianne Stigset
VP Corporate Communications & Public Affairs
Tel: +47 411 88 482
Email: marianne.stigset@elkem.com

This release contains inside information related to Elkem ASA pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to Section 5-12 the Norwegian Securities Trading Act. This release is issued by
Odd-Geir Lyngstad, VP Finance and Investor Relations, Elkem ASA. Date and time
of publication: 08:00 CEST, 09.07.2025.

About Elkem
Elkem is one of the world's leading providers of advanced silicon
-based materials shaping a better and more sustainable future. The company
develops silicones, silicon products and carbon solutions by combining natural
raw materials, renewable energy and human ingenuity. Elkem helps its
customers create and improve essential innovations like electric mobility,
digital communications, health and personal care as well as smarter and more
sustainable cities. With a strong track record since 1904, its global team of
more than 7,200 people has a joint commitment to stakeholders: Delivering your
potential. In 2024, Elkem achieved an operating income of NOK 33 billion. Elkem
has been awarded top score of A on Forests and Water Security, and B on Climate
Change from CDP. Elkem is listed on the Oslo Stock Exchange (ticker: ELK), where
the company is also included in the ESG Index. www.elkem.com

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