Our rule of lemma introduction is more general than this, because it allows introducing an auxiliary result at any point, provided it has been justified from the axioms available at that point. Here is how this looks as a proof goal reduction rule:
A |= P ----> (A |= Q) and (A and Q) |= Pwhere Q is the "lemma". If Q has visible sort, and if the data algebra has been defined by initial algebra semantics, then in particular, induction can be used to prove Q.