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Demand from the automotive, electric vehicle (EV), construction and packaging sectors are likely to increase which would support long-term growth in aluminium recycling, says CMR Green Tech Chairman and Managing Director Mohan Agarwal.
{alcircleadd}Mohan Agarwal said that aluminium demand is coming from both conventional vehicles and EVs. EVs use aluminium three times more than conventional vehicles because of the strength-to-weight ratio of the metal. Recycled aluminium was the same quality product as primary aluminium and could be recycled over and over again without losing performance, he said.
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The recycling business will grow at a faster rate than the primary aluminium segment and can be the biggest source of metal in the future, Agarwal said. The only exception is gearbox wire, which has very specific conductivity requirements, but recycled aluminium can be used in virtually any application that is based on alloys', he said.
The company has recently commissioned a beverage can recycling plant and expects to be operating at 70-80 per cent of its 30,000 tonnes per annum billet capacity by FY2027. CMR Green Tech is also targeting a return on capital employed (ROCE) of 20-25 per cent by FY2028, after near-term pressure from capital expenditure on expansion projects.
The company expects aluminium demand to be supported by a sustained growth in the automotive sector and the gradual implementation of Extended Producer Responsibility (EPR) requirements, which are expected to increase recycled content across a broad range of aluminium products, said Agarwal.
Explore our e-magazine Sustainability & Recycling: Aluminium's Dual Commitment for the latest industry insights and trends
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