Norwegian authorities awarded Elkem 1.3 million additional free EU ETS emission allowances after correcting what they called unequal treatment versus comparable EU producers. The decision also aligns Elkem's Norwegian plant allocations with EU peers for 2026 to 2030, which lowers near-term carbon cost uncertainty for the silicon and specialty materials maker. Shares have responded well, up about 9% over 90 days and 11% year to date. Still, the stock trades at a P/E of 44.3x versus a European chemicals average of 17.1x. The extra allowances are a real cost cushion, but free allocations are not permanent. Long-term value depends on how the EU ETS cap tightens, demand in China and the EU, and the outcome of the Silicones review.
