In conversation with Matt Meenan, vice president of external affairs at the Aluminum Association, regarding US tariffs challenges, impacts, and solutions. Mr Meenan has candidly shared his opinion that the United States should find ways to capture and recycle more aluminium scrap - something that can be done at a fraction of the cost of building new smelters. He said this in the context of growing demand for aluminium in the US domestic market. According to him, domestic US aluminium demand remains 3.5% higher than the last year and 10% more than a decade ago. He also pointed out that the long-term demand for aluminium is expected to grow by 80% globally by 2050.

To know more about Matt Meenan's valuable insights, read the full interview below.

AL Circle: How will the United States meet the growing demand for aluminium in 2025 if global tariffs limit imports, particularly given that, as Alcoa Chief William Oplinger notes, constructing a new smelter requires a minimum of five to six years?

Matt Meenan: The United States needs an “all-of-the-above” approach to metal supply. We absolutely would love to see new smelters built and believe we have a partner in the administration to work toward that goal, and we’ve been happy to see some move in this direction by Century Aluminum and EGA. The United States is currently “short” of 4 million tonnes of unwrought aluminium that we import each year (primarily from Canada). New Aluminum Association research found that to meet that metal gap with smelters alone would require us to build 5 new smelters just to meet current demand, to say nothing of projected demand a decade from now. Building a single new smelter would take $5 billion; 5 years; and 11 million mWh (the equivalent power consumption of the city of Boston for 1 year). It would also mean 20-year power contracts $40/MWh in an environment where tech firms are paying upward of $115/MWh for data center electricity. In addition to new smelters, the United States should find ways to capture and recycle more aluminium scrap – something that can be done at a fraction of the cost of building new smelters. Collecting and recycling the (conservative) estimate of 1 - 2 million tonnes of usable scrap currently landfilled or exported would meet 25% - 50% of the existing US metal supply gap. In the meantime, we need reliable access to abundant, affordable aluminium through strategic trading relationships with countries like Canada.

AL Circle: How is the Aluminum Association responding to concerns within the end-user sector regarding a potential surge in domestic aluminium prices resulting from steep tariffs on aluminium products? For example, Coca-Cola has indicated it may consider shifting to plastic packaging due to the increased costs associated with these tariffs.

Matt Meenan: This is certainly worth watching and underscores the need for certainty in the tariff landscape. Overall, domestic aluminium demand remains solid—up 3.5% last year and 10% from a decade ago, and long-term demand for aluminium is expected to grow by 80% globally by 2050. Aluminium’s recyclability and lightweight durability give it significant advantages over alternative materials. We remain confident in aluminium’s overall value proposition, but certainly, the potential for long-term demand destruction bears watching.