Europe must treat domestic scrap as a strategic asset to meet its decarbonisation target without being dependent on imports

As part of AL Circle’s latest initiative, “European Aluminium Recycling Market,” an exclusive interview between AL Circle and Tom Jansen, VP and Head of Segments for TOMRA Recycling, explored why Europe’s aluminium recycling debate is shifting from how much scrap is available to how well that scrap can be recovered, retained and reused within the region.

In this conversation Jansen stated that Europe’s real challenge lies in scrap quality, industrial retention and competitiveness. He warned that by allowing high-value aluminium scrap to leave the region, Europe is weakening its own circular economy and pushing local smelters into a costly bidding war with international buyers.

He also stressed that improving scrap quality must take priority over simply adding recycling capacity. Poor feedstock, he noted, reduces margins, limits investment and increases the risk of downcycling.

Read the full interview for Tom Jansen’s views on Europe’s aluminium scrap challenge, recycling competitiveness and the road ahead for a stronger circular economy.

AL Circle: From TOMRA’s perspective, are European recyclers investing in advanced sorting mainly due to regulation, or are scrap quality premiums, customer demands and profitability becoming stronger drivers?

Tom Jansen: It is a combination of both, but currently market forces are more influential, and our customers are mainly responding to the demands of downstream manufacturers. These manufacturers are facing rigorous net zero targets and recognise that high-quality secondary aluminium is the most effective way to lower their carbon footprint. As a result, the market premium for clean, alloy-specific scrap has increased significantly. Recyclers now view advanced sorting as a key business investment rather than just a compliance measure. By achieving higher purity levels, they can serve market segments that were previously out of reach, making the financial return on technology investment very compelling.

AL Circle: How is TOMRA adapting its technology roadmap to meet evolving requirements from aluminium producers that want higher recycled content without compromising alloy performance?

Tom Jansen: Historically, X-ray transmission was the industry standard for separating heavy metals, and it remains a key technology for bulk processing. However, today the requirement is for sophisticated, alloy-specific separation. We have been actively evolving our roadmap to address this, starting with our latest generation of x-ray transmission technology, X-TRACT™, which was launched in 2022 to handle initial bulk removal. In 2023, we added our AUTOSORT™ PULSE with dynamic laser-induced breakdown spectroscopy (LIBS) to solve the challenge of high-speed elemental alloy identification, followed in 2024 by the launch of GAINnext™, our deep learning-based AI solution.

To achieve the precise purity levels required today, we deploy a sequence of distinct, individual machines arranged chronologically in a continuous processing line:

• First stage (X-TRACT™): This performs the primary bulk separation, removing heavy metals (such as copper, brass and zinc) as well as high-density wrought aluminium and high-alloy cast
• Second stage (GAINnext™): GAINnext™ processes thousands of images per millisecond to analyse shape, size and dimension, allowing it to classify and remove remaining low-alloy cast and other low-density contaminants like UBCs that traditional sensors might miss.
• Final stage (AUTOSORT™ PULSE): Lastly, the material passes through the AUTOSORT™ PULSE, which uses dynamic laser-induced breakdown spectroscopy (LIBS) to perform high-speed elemental analysis and identify specific alloys

By combining these technologies in a single, sequential line, we can deliver the high-purity output required to meet primary aluminium standards, ultimately increasing the market value of the recycled material.

AL Circle: Europe is increasingly dependent on secondary aluminium, yet a large volume of aluminium scrap continues to leave the region. How serious is Europe’s scrap deficit today, and which parts of the aluminium value chain are feeling the pressure most?

Tom Jansen: While significant amounts of scrap leave the region, the main issue is less about the volume and more about the quality of the material remaining in Europe. Secondary smelters are under the most pressure because they must compete for feedstock with regions outside of Europe where high prices are offered even for mixed, unsorted scrap.

This creates a competitive disadvantage for local industry. When high-value material is exported, European smelters are forced into a bidding war against international buyers to secure the limited supply of high-grade scrap that remains. To keep their furnaces running efficiently, they often have to choose between paying extremely high prices for local material or reverting to using virgin, primary metal. Because using virgin metal is much more energy intensive, this reliance drives up operating costs and weakens the competitive position of European recyclers. Ultimately, Europe is exporting its industrial advantage by letting these vital resources leave the region instead of keeping them within its own circular economy.

AL Circle: Aluminium scrap is now being viewed less as waste and more as a strategic secondary raw material. Do you think Europe has moved fast enough to treat scrap as an industrial-security issue?

Tom Jansen: Europe has recognised the importance of aluminium scrap as a critical raw material rather than waste, but it hasn’t yet implemented a strategy that effectively retains that scrap within the region. While the conversation has shifted, policy still lags behind the reality of industry needs.

Europe lacks the vast, low-cost primary production capacity found in other regions. To meet its decarbonisation targets without becoming increasingly dependent on imports, Europe must treat domestic scrap as a strategic asset. There is a need to move beyond viewing scrap exports as a standard commodity trade and start recognising them for what they actually are: the loss of a vital, energy-independent resource. Retaining this material is vital for Europe’s industrial security and its ability to build a robust, circular economy.

AL Circle: Europe exports a significant volume of aluminium scrap while its recyclers and remelters face rising input costs. Is this mainly a trade imbalance, a policy failure, or a capacity-utilisation problem?

Tom Jansen: These are not isolated problems, but interconnected symptoms of a single issue. The large volume of aluminium scrap exported could have been minimised by a proper framework that incentivises keeping scrap within the region. Because there is no framework to make domestic circularity the most attractive economic option, the market prioritises the highest price, which is often found overseas.

This scarcity drives up domestic prices, which reduces margins for recyclers. When margins are low, it becomes difficult to invest in the technology required to process more complex local streams.

AL Circle: The EU is considering targeted measures on aluminium scrap exports, but the recycling industry is divided. What is the real problem Europe must solve first: scrap leakage, domestic recycling capacity, or scrap-quality management?

Tom Jansen: Europe must optimise how it manages the aluminium scrap already available in its domestic market. While it is important to continue investing in domestic recycling capacity, the greatest gains will come from improving collection and recovery rates, as well as incentivising the development of sorting technology to produce higher-quality material.

Quality should be the priority. Expanding capacity is ineffective if the feedstock is poor, as this inevitably shrinks margins. The most significant improvements come from enhancing collection and deploying advanced technology to prevent the downcycling of high-value material. AI-based object singulation, for instance, allows for faster and more accurate sorting without sacrificing throughput. When the quality of the local feed is optimised, the issue of scrap leakage will naturally diminish because the material remains where it is valued most.

AL Circle: European Aluminium has supported export fees to keep more aluminium scrap within the EU. Would such measures strengthen Europe’s recycling ecosystem, or could they create unintended pressure on recyclers?

Tom Jansen: Relying on export fees alone will put recyclers under significant pressure, potentially damaging their competitiveness and discouraging investment in the collection and sorting solutions required to increase scrap quality.

The focus needs to be on making local scrap so high-quality and so cost-effective to process that exporters cannot compete. Instead of taxing trade, we should be rewarding investment in advanced sorting technology. By improving the quality of the feedstock, the industry can ensure that domestic demand is met through improved recovery. This naturally strengthens the entire recycling ecosystem.

AL Circle: Around 15 per cent of the European Union’s aluminium recycling furnace capacity is reportedly offline because of insufficient scrap supply. In your opinion, what could be the best possible ways to overcome this crisis?

Tom Jansen: The focus should be on creating an environment that encourages investment to boost capture rates and increase the purity of the recovered stream while producing higher-quality material. Governments can provide support by incentivising recycled content or implementing targeted measures to keep these valuable resources in the region. 

The industry needs to bridge the gap between waste management and industrial end-users. Innovation in sorting technology is a vital part of that solution. Modular systems configured for specific challenges, such as removing complex contaminants from aluminium streams, are essential to extracting value that was previously considered lost. Furthermore, there is a need for greater digital transparency. By using data on material flow and machine health, feedstock can be managed much more efficiently.