“In addition to new smelters, the United States should find ways to capture and recycle more aluminium scrap – something that can be done at a fraction of the cost of building new smelters,” Matt Meenan, vice president of external affairs at the Aluminum Association
In conversation with Matt Meenan, vice president of external affairs at the Aluminum Association, regarding US tariffs challenges, impacts, and solutions. Mr Meenan has candidly shared his opinion that the United States should find ways to capture and recycle more aluminium scrap - something that can be done at a fraction of the cost of building new smelters. He said this in the context of growing demand for aluminium in the US domestic market. According to him, domestic US aluminium demand remains 3.5 per cent higher than the last year and 10 per cent more than a decade ago. He also pointed out that the long-term demand for aluminium is expected to grow by 80 per cent globally by 2050.
To know more about Matt Meenan's valuable insights, read the full interview below.
AL Circle: How will the United States meet the growing demand for aluminium in 2025 if global tariffs limit imports, particularly given that, as Alcoa Chief William Oplinger notes, constructing a new smelter requires a minimum of five to six years?
Matt Meenan: The United States needs an “all-of-the-above” approach to metal supply. We absolutely would love to see new smelters built and believe we have a partner in the administration to work toward that goal, and we’ve been happy to see some move in this direction by Century Aluminum and EGA. The United States is currently “short” of 4 million tonnes of unwrought aluminium that we import each year (primarily from Canada). New Aluminum Association research found that to meet that metal gap with smelters alone would require us to build 5 new smelters just to meet current demand, to say nothing of projected demand a decade from now. Building a single new smelter would take $5 billion; 5 years; and 11 million mWh (the equivalent power consumption of the city of Boston for 1 year). It would also mean 20-year power contracts $40/MWh in an environment where tech firms are paying upward of $115/MWh for data center electricity. In addition to new smelters, the United States should find ways to capture and recycle more aluminium scrap – something that can be done at a fraction of the cost of building new smelters. Collecting and recycling the (conservative) estimate of 1 - 2 million tonnes of usable scrap currently landfilled or exported would meet 25 per cent - 50 per cent of the existing US metal supply gap. In the meantime, we need reliable access to abundant, affordable aluminium through strategic trading relationships with countries like Canada.
AL Circle: How is the Aluminum Association responding to concerns within the end-user sector regarding a potential surge in domestic aluminium prices resulting from steep tariffs on aluminium products? For example, Coca-Cola has indicated it may consider shifting to plastic packaging due to the increased costs associated with these tariffs.
Matt Meenan: This is certainly worth watching and underscores the need for certainty in the tariff landscape. Overall, domestic aluminium demand remains solid—up 3.5 per cent last year and 10 per cent from a decade ago, and long-term demand for aluminium is expected to grow by 80 per cent globally by 2050. Aluminium’s recyclability and lightweight durability give it significant advantages over alternative materials. We remain confident in aluminium’s overall value proposition, but certainly, the potential for long-term demand destruction bears watching.
AL Circle: Is the Aluminum Association urging the US administration to reconsider or lift tariffs on Canadian aluminium imports, given that Canada is the United States' largest aluminium supplier, accounting for 75 per cent of its total imports?
Matt Meenan: There’s a lot that we support in President Trump’s tariff actions to strengthen domestic aluminium, including stronger trade enforcement, tightening up the product exclusion process, and willingness to consider tariffs on aluminium derivative products to avoid tariff circumvention. We are calling for more certainty in the overall tariff landscape as well as access to reliable, affordable metal to help the industry grow and invest. That’s why we’ve called for a deal with Canada to ensure the continued strategic trading relationship in aluminium – consistent with actions President Trump wisely took in his first term. The current 4 million tonnes “metal gap” of unwrought aluminium demand must be met by imports, increased recycling or building new smelters/restarting old. Those are the options. Canada currently meets 75 per cent of these unwrought imports, which is ultimately a good deal for America, essentially importing 4 Hoover Dams worth of energy from Canada at a discount. And one smelter job in Canada supports 13 mid-and-downstream aluminium production jobs in the United States.
AL Circle: Given the rising rate of domestic scrap recovery compared to primary aluminium production, will the United States be able to meet its growing aluminium demand in 2025 primarily through recycled aluminium rather than newly produced metal?
Matt Meenan: Meeting demand for aluminium requires an all-of-the-above approach—importing metal from reliable trading partners like Canada, increasing domestic production and improving recycling. We are pushing for new thinking on consumer recycling policy like recycling refund programs; increased investment in new sorting technologies and recycling infrastructure; and finding ways to keep more essential aluminium scrap here in America rather than exporting it overseas. You can learn more at www.aluminum.org/PowerUp.
