Τhe recent whitepaper, "Powering Up American Aluminum," by the Aluminum Association and Wittsend Commodity Advisors, outlines a strategic path to strengthening U.S. aluminum recycling. As a secondary aluminum producer, it is important to highlight the specific opportunities and responsibilities the industry has to unlock the full potential of aluminum recycling to strengthen America's supply chain resilience.

Aluminum isn't just a commodity; it's a critical mineral. U.S. national security, infrastructure expansion, and consumer goods all depend on it. And yet, the U.S. is throwing too much of it away or shipping it overseas. These are the two key issues at play: Not enough scrap is recovered, and too much of it is being exported. For example, Americans consume over 100 billion aluminum beverage cans annually, but only 43% are recycled. That leaves more than 800,000 tonnes of aluminum scrap sitting in landfills. The U.S. automotive recycling industry recycles approximately 15 million obsolete automobiles and generates 4 million tonnes of mixed nonferrous scrap annually. However, inefficient processing is limiting domestic aluminum recovery. To address these issues, this editorial will take a closer look at the challenges and opportunities around beverage can and automotive recycling and scrap exports.

The Case for Cans
Germany recycles nearly 99% of their aluminum cans. At 43%, the U.S. recycling rate for cans has nowhere to go but up. To prioritize domestic collection and sorting infrastructure, the white paper calls for a mix of federal and state action:- Offer tax credits for municipal recycling upgrades.
- Support Extended Producer Responsibility (EPR) programs, where beverage companies fund recovery systems with a financial interest in the recovered material.
- Enact smart deposit laws in high-population states to raise can recycling rates.

Currently in the U.S., only ten states have deposit laws, typically called "bottle bills." Oregon stands as an example of the effectiveness of such laws, with a nearly 100% used beverage can (UBC) recycling rate. Imagine if the U.S. pushed UBC recovery to 90%. The aluminum industry could unlock close to a million tons of clean, domestically available scrap every year.

Sort it Out
As mentioned, the U.S. recycles approximately 15 million vehicles annually. Along with other postconsumer scrap, like used appliances, that yields about 4 million tonnes of nonferrous material per year. Vehicle shredders produce an aluminum product known as zorba, a mixed material containing 70-90% aluminum, along with copper, stainless steel, and other metals. Zorba must be further processed into a product called twitch before it can be used effectively.

Advanced sorting technologies like laser-induced breakdown spectroscopy (LIBS) and x-ray transmission (XRT) can separate zorba into discrete aluminum alloys for higher-value applications in rolling mill and extrusion markets. However, the current technology is too slow, processing only 5-8 tonnes per hour compared to the 10-15 tonnes per hour needed to optimize production.

The aluminum industry should prioritize domestic investment in processing technologies to better separate high-purity alloys from automotive and appliance scrap. At the same time, the U.S. should provide federal support for R&D and tax credits for companies investing in high-speed, high-aсcuracy sorting technology. These investments won't just benefit secondary producers; they will ripple through to every U.S. fabricator and manufacturer that depends on aluminum.

Retaining Domestic Supply
With over 2.4 million tonnes of aluminum scrap exported from the U.S. in 2024, a significant amount of scrap leaves the U.S. every year when it could be supporting domestic production. Much of this ends up in nonmarket economies, undermining America's own manufacturing base. The U.S. is shipping out valuable feedstock that could be used to strengthen the domestic aluminum supply chain.

How can the U.S. limit the export of valuable aluminum scrap to countries that don't offer reciprocal market access or environmental standards? The white paper proposes exploring restrictions on exports to non-market economies and enforcing fair trade in scrap flows.

Get Smart About Scrap
To meet America's growing aluminum needs, the aluminum industry must boost domestic recovery, deploy advanced recycling technologies, and stop the scrap drain. But coordinated action is needed across federal, state, and private sector players to unlock the full value of American aluminum recycling.

Recycling is more than an environmental win; it's a strategic imperative for supply chain security, energy efficiency, and economic resilience. The U.S. can start by using what the country already has and keeping it here. 

A national aluminum scrap strategy sets bold recovery goals and supports investment in the infrastructure to get us there. Let's stop exporting opportunity and start building a stronger, more circular aluminum future at home.
Editor's Note: Access the Aluminum Association white paper,"Powering Up American Aluminum," at: www.aluminum.org/PowerUp.

The article appeared in Light Metal Age's August 2025 issue.