AI recycling startups see opportunity as aluminium prices surge

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Rising aluminium prices are creating new opportunities for recycling and waste-sorting startups as global supply disruptions tighten the market.

Aluminium prices have climbed sharply in recent months after conflict in the Gulf region disrupted supply from one of the world’s largest aluminium-producing hubs. Around 10 per cent of global aluminium production comes from the Gulf region, and the supply uncertainty has pushed aluminium prices to some of the highest levels seen in decades.

The situation has also renewed interest in aluminium recycling, especially in the United States, where a significant share of aluminium demand is supplied from recycled material.

Amp and Sortera are among the few companies that are using AI systems to improve aluminium recovery from waste streams.

According to Amp CTO Matanya Horowitz, aluminium represents only 1 per cent of total waste but remains one of the most valuable recyclable materials, with trades going up to USD 1000 per tonne.

Sortera recently opened its second recycling facility in Tennessee, doubling its annual processing capacity to around 240 million pounds.

The company mainly focuses on sorting aluminium scrap and uses technologies like cameras, lasers and X-ray fluorescence sensors along with AI algorithms to identify different grades of aluminium.

Explore: The most comprehensive and forward-looking industry-focused report – World Recycled ALuminium Market Analysis Industry forecast to 2032

By separating aluminium scrap more accurately, the company aims to improve the value recovered from each tonne of material processed.

Amp has taken a broader approach by using AI-powered systems to sort both general waste and recycling streams. Its system uses infrared and visual sensors along with robotic arms and air-based sorting systems to separate materials including aluminium, plastics and foil packaging.

The company said its systems can recover specific materials with accuracy levels above 90 per cent. Horowitz said a large amount of aluminium still ends up in general garbage streams instead of entering recycling systems, even in cities with established recycling programs.

Industry estimates cited in the report suggest only around 20 per cent of aluminium waste is currently recovered in the United States.

As aluminium continues to be classified as a critical mineral by the US government, recycling is increasingly being viewed as an important domestic supply source for sectors including construction, packaging, transportation and energy infrastructure.

The report added that AI-driven recycling facilities could become one of the larger sources of domestically produced aluminium supply coming online in the coming years.

Explore our e-magazine Sustainability & Recycling: Aluminium's Dual Commitment for the latest industry insights and trends.