In a world racing toward decarbonisation, one metal that is quietly rewriting the rules of industrial sustainability is aluminium. Long valued for its strength and versatility, aluminium is now stepping into the spotlight as a cornerstone of the global green transition. From solar-powered smelters and electric furnaces to closed-loop scrap systems and low-carbon alloys, aluminium's evolution is no longer just industrial, it's ideological. Each year, approximately 30 million tonnes of aluminium scrap are recycled worldwide, a testament to its remarkable circularity. Nearly 75 per cent of all aluminium ever produced is still in use today, underscoring its longevity and unmatched recyclability.
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And this shift isn't happening in isolation. According to PMMI's 2024 State of the Industry US Packaging Machinery Report, aluminium is rapidly gaining ground as the preferred sustainable packaging material across North America, outpacing plastic and even glass. Major manufacturers are responding fast, retooling operations to support this rising demand. As per the Aluminum Association, aluminium demand in the US and Canada climbed 3.4 per cent year-over-year in 2024, nearing 27 billion pounds (around 12.25 million metric tonnes) in total consumption. In fact, during H1 2025, a wave of similar initiatives from cleaner smelting technologies to circular packaging innovations further accelerated the aluminium industry's sustainability shift, signalling a future that's lighter, cleaner, and smarter. Let's have a look-
The renewable energy sector
Renewable energy plays a vital role in steering the aluminium industry toward a low-carbon future. By adopting clean energy sources such as hydropower, solar, and wind, the sector can drastically cut emissions, particularly from the highly energy-intensive smelting process. A recent study conducted by Eunomia and commissioned by the International Aluminium Institute (IAI) reinforced this shift, identifying renewable electricity and recycling as the two key levers for deep decarbonisation within the aluminium industry. This trend aligns with broader global momentum.
Infact, in 2023, the European Union made notable progress in its transition to green energy, reducing fossil fuel consumption by 19 per cent to reach a historic low, now less than one-third of total electricity generation. Wind and solar together contributed 27 per cent to the energy mix, pushing the share of renewables above 44 per cent for the first time. Below is a list of some notable initiatives that shaped the aluminium industry in H1 2025-
- China continues to lead the global shift toward renewable energy, making remarkable strides in 2024 by adding 277 GW of solar and 79 GW of wind power, surpassing the pace of most other nations. These additions pushed the country’s total non-hydro renewable energy capacity to 1,407 GW, with solar contributing 886 GW and wind nearly 521 GW. By the end of 2024, China alone accounted for 15 per cent of the world’s total renewable capacity installed that year. According to the International Energy Agency, China is set to install a staggering 3,207 GW of new renewable capacity between 2024 and 2030, more than triple the growth it achieved from 2017 to 2023. Since 2015, China’s share in global annual renewable additions has been steadily rising and is expected to reach 60 per cent by 2030. By then, China is projected to hold at least half of the world’s cumulative renewable energy capacity, reflecting its deep commitment to achieving net-zero emissions by 2060.
- India’s green energy transition is gaining momentum, with Greenko, Adani Green Energy, and JSW Energy spearheading the country's ambitious push into pumped storage hydropower (PSH) a key solution for long-duration energy storage. According to the Central Electricity Authority (CEA), these three private giants are set to deliver nearly 66 per cent of India’s planned 51.24 GW PSH capacity by 2032. Greenko leads with 13.2 GW, followed by Adani (11.4 GW) and JSW (7.7 GW). This marks a massive leap from the current <5 GW capacity, with 10 GW already under construction across 39 projects, mainly in Andhra Pradesh and Maharashtra.
- In a historic step blending economic ambition with climate action, China has launched construction of the monumental Yarlung Zangbo Hydropower Project in Tibet, valued at USD 168 billion. Touted as a major clean energy breakthrough, the project is set to transform regional energy dynamics and play a pivotal role in supporting the aluminium sector by easing the burden on Yunnan’s power supply. Speaking from Nyingchi, Premier Li Qiang hailed it as the "project of the century," underlining its national strategic importance. The five-dam complex along the Yarlung Zangbo River is projected to generate 300 terawatt hours (TWh) of electricity annually by 2035 surpassing the UK’s current yearly power consumption. With a total investment of 1.2 trillion yuan, it ranks among the world’s largest hydropower ventures.
- In a move aligned with France’s green infrastructure goals, French startup Closura has unveiled aluminium solar carports that merge clean energy generation with durable, lightweight design. Crafted from marine-grade aluminium, these carports are engineered to help businesses and municipalities meet evolving sustainability regulations, reduce energy costs, and shrink their carbon footprint. Headquartered in Le Thou, southwestern France, Closura is responding to national legislative shifts—the Climate and Resilience Act (2021) and the APER Act (2023), which mandate that large parking lots must cover at least 50 per cent of their area with photovoltaic canopies between 2026 and 2028. The use of marine-grade aluminium not only ensures structural longevity and corrosion resistance but also simplifies installation due to its low weight.
Recycling
As per AL Circle’s report, the recycled aluminium usage across the world increased from 27.7 million tonnes in 2023 to 28.4 million tonnes in 2024. Usage is expected to increase to more than 29 million tonnes in 2025. With this, it is very much clear that recycling is the driving force behind the aluminium industry’s sustainability transition.
- Neveah Limited has officially kicked off operations at its state-of-the-art aluminium and copper recycling facility in Ogun State, marking a significant milestone in Nigeria’s push toward circular manufacturing. During its inaugural production run, the plant successfully delivered its first batch of aluminium ingots, achieving an impressive purity level of 85.1 per cent a strong testament to the company’s commitment to quality as it scales up output. The facility is set to produce ADC 12-grade aluminium ingots, catering to both domestic demand and export markets. Sourced from recycled aluminium scrap such as used car engine components and beverage cans the ingots will be shipped to destinations across Asia and beyond, reinforcing Neveah’s role in powering the global circular economy through sustainable metal solutions.
- On Monday, March 17, Norwegian aluminium and renewable energy leader Norsk Hydro broke ground on its state-of-the-art recycling facility in Torija, Spain. The €180 million project marks a significant step in Hydro’s circular economy strategy, aimed at increasing the use of post-consumer aluminium scrap and expanding its portfolio of low-carbon aluminium solutions in Europe. Once operational in 2026, the Torija plant will produce up to 120,000 tonnes of extrusion ingots annually, recycling around 70,000 tonnes of post-consumer scrap using advanced sorting technologies and innovative production methods.
- In a powerful nod to the “Made in Australia” spirit, Capral, Rio Tinto, and Sims Metals have teamed up to launch a closed-loop aluminium recycling initiative in Queensland-an impressive step toward a cleaner, circular future. Capral’s Bremer Park facility will supply post-production aluminium scrap, which Sims Metals will then sort and process. That processed scrap will head to Rio Tinto’s Boyne Smelter in Gladstone, where it’ll be remelted into fresh aluminium. The journey comes full circle as the recycled aluminium expected to top 1,000 tonnes with a 20 per cent recycled content is sent back to Capral’s Bremer Park site for extrusion and manufacturing.
- In a landmark move for Europe’s energy transition and circular economy goals, French transmission system operator RTE (Réseau de Transport d’Électricité) and cable innovation leader Nexans have launched France’s first-ever industrial-scale aluminium recycling initiative for high and extra high-voltage power cables. Kicking off in 2024, this pioneering partnership showcases how circularity and decarbonisation can go hand in hand to reshape Europe’s energy infrastructure. The project will recycle approximately 600 metric tonnes of aluminium annually, delivering significant environmental gains by avoiding at least 400 metric tonnes of CO₂ emissions each year. The initiative plays a critical role in helping France meet its SDDR 2025 network development targets.
Technological innovations powering sustainability in the aluminium industry
As the world intensifies its pursuit of a low-carbon future, the aluminium industry, known for its energy-intensive processes faces mounting pressure to decarbonise and adopt sustainable practices. In this transformation, technology has emerged as the cornerstone of progress, enabling producers to significantly reduce emissions, optimise resource utilisation, and transition to cleaner operations without compromising output or quality. From carbon capture to electrification and resource-efficient refining, recent breakthroughs are demonstrating how innovation can reshape the aluminium value chain.
- RUSAL, one of the world’s leading aluminium producers has launched Russia’s first industrial carbon capture, utilisation, and storage (CCUS) project to be registered in the national carbon unit registry. Located at the Achinsk alumina refinery, the project marks a significant step in supporting global efforts to reduce CO₂ emissions and decarbonise heavy industry. As part of this initiative, RUSAL has upgraded its wet-type scrubber units to capture carbon dioxide emitted during fuel combustion. The captured CO₂ is absorbed using a closed-loop water circulation system, effectively preventing its release into the atmosphere. Over the next ten years, the project is expected to eliminate 1.8 million tonnes of CO₂ equivalent emissions. This milestone forms a crucial part of RUSAL’s broader strategy to cut its carbon footprint and deploy climate-resilient technologies. The company is also exploring scalable CCUS solutions that can be applied across various sectors of heavy industry.
- Otto Junker, a globally recognised manufacturer of advanced industrial furnace systems for the metal processing industry, has successfully completed a major decarbonisation project at Neuman Aluminium's Strangpresswerk facility in Lilienfeld, Lower Austria. Specialising in aluminium component production, the facility is making significant strides toward sustainable manufacturing. In collaboration, the two companies have converted a previously gas-fired billet heating plant to electric heating an important step toward climate-neutral operations. Originally commissioned as a gas-fired convective billet heater in 2016, the system has now been modernised with Otto Junker’s energy-efficient EcoJet technology. This upgrade allows the facility to heat 8-inch aluminium billets using clean, CO₂-free electricity.
- Aden Group, a global leader in integrated industrial services, has unveiled a groundbreaking pilot deployment of sustainable bauxite refining technology at its 15,000 sqm facility in Shanxi, China. Developed in collaboration with French tech start-up IB2, this initiative marks a transformative step for China’s aluminium supply chain, enabling the conversion of surplus, low-grade domestic bauxite into high-quality feedstock, while significantly reducing emissions and improving resource efficiency. At the heart of this innovation lies IB2’s proprietary refining process, co-developed by entrepreneur Romain Girbal and chemist Yves Occello. Compared to conventional methods, the IB2 process boosts ore utilisation by 30 per cent and cuts emissions by 40 per cent, equating to a reduction of approximately 210,000 tonnes of CO₂ for every one million tonnes of bauxite processed. This pilot project positions China to unlock more sustainable and self-reliant aluminium production.
Low carbon aluminium production
In 2024, global production of low-carbon aluminium reached 55.2 million tonnes. With the accelerating pace of the energy transition, overall aluminium demand is projected to rise by 37 per cent by 2040. This surge is primarily fuelled by key sectors such as electric vehicles, solar energy, and transmission and distribution (T&D) infrastructure.
- The European aluminium industry is charting an ambitious course toward a sustainable future with Vision 2050, a bold blueprint to create a carbon-neutral, circular, and energy-efficient aluminium value chain by mid-century. In response to this rising momentum, project company Arctial has initiated an industrial and investment partnership to conduct a feasibility study for low-carbon aluminium production in Finland, signalling a concrete step toward realising Europe’s sustainable aluminium ambitions. If brought to fruition, the Arctial aluminium smelter would mark a historic milestone as the first new primary aluminium facility built in continental Europe in over 30 years a significant leap toward strengthening the region’s supply chain resilience. Planned with an annual production capacity of 550,000 tonnes of low-carbon primary aluminium, the smelter will utilise Rio Tinto’s state-of-the-art AP60 reduction technology.
Also Read: For Europe, in Europe: First low-carbon aluminium smelter powers Vision 2050 goals
- Growing environmental concerns are prompting a widespread shift toward low-carbon solutions across various industries and the global aluminium sector is no exception. In line with this trend, Capral, a leading aluminium products and solutions provider in Australia, is preparing to introduce a new low-carbon aluminium sheet offering. Set to launch this month, the new sheets will feature an embodied carbon footprint of approximately six tonnes of CO₂ per tonne of aluminium significantly lower than conventional alternatives. Available in standard two- and three-millimetre thicknesses, these sheets offer a versatile and sustainable option for a broad range of applications. Part of Capral’s enhanced LocAl® range, the new product underscores the company’s commitment to supporting more sustainable supply chains. It provides manufacturers and businesses with a practical solution to reduce their environmental impact while maintaining quality and performance.
- India’s rapidly growing renewable energy capacity, coupled with robust government backing for sustainable manufacturing, is attracting heightened interest from global industry leaders including Rio Tinto. On April 17, the global mining major announced a strategic collaboration with energy transition solutions provider AMG Metals & Materials (AMG M&M) to explore the development of an integrated low-carbon aluminium project in southern India. Under a newly signed memorandum of understanding (MoU), Rio Tinto and AMG M&M will jointly evaluate the feasibility of the project, which aims to produce up to 1 million tonnes of primary aluminium and 2 million tonnes of alumina annually. The operations would be powered by 1.8–2.0 GW of solar and wind energy, supported by pumped hydro storage amounting to a clean energy capacity of 7–8 GW. The feasibility study will begin with an assessment of the project's first phase, targeting the annual production of 500,000 tonnes of low-carbon primary aluminium. This initiative represents a significant step toward decarbonising the aluminium value chain in India.
Shaping a sustainable future for aluminium
The aluminium industry is undergoing a remarkable transformation, with technological innovations, renewable energy integration, and enhanced recycling practices driving the sector toward a more sustainable and low-carbon future. From the advancements in clean energy-powered aluminium production to the adoption of circular economy practices, the industry's commitment to decarbonisation is evident across the globe. The efforts of global players such as RUSAL, Rio Tinto, and Capral, along with emerging technologies like carbon capture and low-carbon smelting, are not only reshaping production processes but also setting new benchmarks for sustainability.
Also Read: 5-year countdown: How close is the aluminium industry to meeting the 2030 low-carbon goal?
