Aluminium has gone from being just another metal in cars to a key player shaping the auto industry’s future. Its light weight, strength, resistance to rust, and ability to be recycled without losing its quality makes it vital for improving fuel efficiency, boosting EV range, and reducing emissions over a vehicle’s lifetime.
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Al Circle values the automotive aluminium market at USD 97.86 billion in 2024 and projects it will almost double to USD 205.24 billion by 2032, growing at a CAGR of 9.7 per cent between 2025 and 2032. The sector’s growth is fuelled by increasing adoption of lightweight, high-performance, and sustainable materials across the automotive industry.
According to other sources, the market maintained a clear upward trajectory between 2020 and 2023, driven by the shift toward fuel efficiency and lower emissions. Valued at around USD 58.6 billion in 2020, estimates for 2021 and 2022 ranged between USD 40.6 billion and USD 70.1 billion, yet the overall trend remained positive. By 2023, the market had reached approximately USD 57.46 billion, reflecting steady and sustained progress.
In EVs alone, aluminium demand is expected to climb to 16 million tonnes by 2035, driven by regulatory requirements, the shift to electrification, and increasing consumer demand for lighter, more efficient vehicles.
Shaping a lighter, cleaner future
Aluminium’s low density allows automakers to cut vehicle weight without sacrificing performance or safety. In EVs, this weight reduction helps offset heavy battery packs, extending range and improving energy efficiency. Global environmental regulations are accelerating the shift, as lighter vehicles require less energy to operate and produce, reducing overall carbon footprints.
Carmakers lead with innovation
BMW is accelerating its shift toward sustainable materials, complementing its work on recycled plastics from fishing nets, ropes, and PET bottles with a stronger emphasis on aluminium. In the iX3 SUV, 80 per cent recycled aluminium is used for cast chassis components such as wheel carriers and swivel bearings, while the wheels incorporate 70 per cent recycled aluminium. This builds on a pilot project with German wheelmaker Ronal, which developed recycled-aluminium wheels for the Mini Cooper S E Convertible.
The company is applying the same sustainability focus to its batteries, sourcing 50 per cent of cobalt, lithium, and nickel from recycled supply chains. Battery production emissions have been cut by 42 per cent, and the iX3’s assembly plant operates with a 66 per cent smaller carbon footprint. As a result, the iX3 achieves lifetime emissions parity with a comparable petrol-powered X3 after just 13,360 miles of driving.
Other automakers are also embracing aluminium in big ways. Ford’s F-150 uses a full aluminium body and hood, cutting weight by up to 700 pounds to boost fuel economy and payload, while the Explorer also benefits from aluminium structural parts and wheels.
General Motors’ Chevrolet Malibu features an aluminium engine block, cylinder head, and wheels, enhancing efficiency, handling, and fuel economy. Honda applies aluminium across engines, wheels, and suspension to balance cost, performance, and fuel mileage.
Tesla relies on aluminium for chassis and body structures in the Model S and X for lightweight strength, safety, and battery cooling. Audi’s e-tron SUV incorporates over 40 per cent aluminium for a blend of safety, strength, and efficiency.
From smelters to showrooms
Novelis and Ford: Novelis has a long-term supply agreement with Ford to provide high-strength, military-grade aluminum sheet for Ford's F-Series trucks, including the aluminium-bodied F-150 and the Super Duty line up. This contract supports Ford's light weighting goals and improves truck performance by reducing body weight up to 700 pounds on the F-150 and around 350 pounds on Super Duty trucks. Novelis produces this aluminium sheet at its Oswego, New York, plant, which was expanded and modernized specifically to meet Ford's volume and quality needs starting around 2015-2016.
BMW and Ronal Group: BMW partnered with Ronal, a German wheel manufacturer, to produce wheels with 70-80 per cent recycled aluminium content for models like the Mini Cooper S E Convertible. This collaboration advances BMW’s sustainability ambition by incorporating recycled automotive-grade aluminium in structural components, reducing greenhouse gas emissions in manufacturing processes.
Alcoa and Tesla: Alcoa supplies high-strength advanced aluminium alloys tailored for Tesla’s chassis and body structures. This supply contract supports Tesla’s light weighting strategy critical to EV performance and battery efficiency.
Constellium and Jaguar Land Rover: Constellium entered into agreements with Jaguar Land Rover to supply advanced aluminium alloys for structural parts and battery enclosures, essential for EV safety and lightweight design.
Norsk Hydro: Norsk Hydro maintains closed-loop recycling agreements with several automakers, reclaiming aluminium scrap from production and end-of-life vehicles and supplying recycled automotive aluminium back to manufacturers, enhancing sustainability in the supply chain.
CHALCO and Chinese OEMs: CHALCO secured contracts with various Chinese electric vehicle manufacturers to supply primary and recycled automotive aluminium, supporting the fast-growing EV sector in China.
A metal for the next generation of vehicles
As environmental targets tighten and EV adoption accelerates, aluminium’s role will only grow. Its unique combination of light weight, recyclability, and versatility positions it as a cornerstone material for the next generation of vehicles, from compact city EVs to heavy-duty trucks. More than just a component, aluminium is emerging as a driving force in the automotive industry’s shift toward a cleaner, more efficient, and sustainable future.
Note: To feature your brand and share insights, contribute an article or interview in our forthcoming e-magazine "American ALuminium Industry: The Path Forward."
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