Across major economies – from the United States and European Union to the United Kingdom, Canada, and Africa, aluminium has formally entered the league of critical minerals – not because the metal is rare but it is indispensable for economic and environmental growth. Aluminium, over the period of time, has made itself a non-substitutable element in modern economies through critical applications in industrial growth, defence capability, and decarbonisation. It is also the metal that has built direct relation with global economic structures; hence, any disruption in its supply chain affects employment, trade balances, and industrial output.

Economic contribution – a mature industry with strategic weight

To all these regions stated above, the aluminium industry supports a substantial share of employment and GDP growth.  In the United States, the aluminium sector makes a room for 400,000 American jobs and contributes USD 228 billion in total economic impact, which is nearly 1 per cent of the GDP. The industry in the United Kingdom contributes GBP 2.97 billion (approx.) in Gross Value Added (GVA) and directly employs around 37,000 individuals. Even the Canadian aluminium industry makes a significant value-added contribution to Quebec . The value of primary aluminium exported from Canada is USD 10 billion and the total employment across the industry is over 11,000.

Energy transition - what truly gives aluminium its ‘critical’ status

This is only the economic contribution of the aluminium industry. What truly gives aluminium a ‘critical’ label is its role in decarbonisation, given its undeniable contribution of renewable energy infrastructure and electric vehicles. Among all the renewable energy infrastructures, only solar photovoltaic consumes about 8 million tonnes of aluminium in a year. Over 85 per cent of structural component demand in photovoltaics is fulfilled by aluminium. Approximately, 10,000-20,000 tonnes of aluminium are required for 1 GW of solar capacity.

Besides, the application of aluminium in electric vehicles, another key contributor to decarbonisation, uplifts its status as ‘critical’ metal. On average, each electric vehicle consumes 205 kg of aluminium. CRU suggests aluminium demand from electric cars to reach nearly 10 million tonnes per year by 2030.