Consulting firm McKinsey & Co. has urged the aluminium industry to adopt advanced scrap sorting methods to unlock higher-value recycling opportunities. In a recent chart published on its website, the firm noted that 68 per cent of aluminium scrap is post-consumer and over half of it is collected in mixed formats, creating a barrier to quality recovery.
“A large portion of aluminium scrap comes from postconsumer sources, but much of it ends up in mixed scrap pools,” noted McKinsey and Germany-based staff member Peter Spiller. He warns that such mixed streams are prone to being “downcycled,” meaning high-value alloys are left unrecovered.
Aluminium recycling and the circular economy
The analysis builds on McKinsey’s July 2025 report, part of its six-part “Materials Circularity” series, which also examined copper, plastics, glass, and rare earths. The aluminium-focused study highlights recycling as central to meeting the expected 24 million metric tonnes per year demand growth by 2035. With primary smelting projected to meet only 30 per cent of that growth, recycling must fill the gap, yet a 4 million tonnes per year supply deficit looms if collection inefficiencies persist.
The report highlights aluminium's two purposes: as a structural element for construction and packaging and as a critical material for low-carbon applications such as EVs, solar PVs, wind turbines and transmission systems.
Also read: Aluminium scrap recovery growth helps US maintain balance despite trade shifts
From zorba to twitch: how advanced sorting adds value
McKinsey identifies solutions in advanced sorting technologies like X-ray fluorescence (XRF), X-ray transmission (XRT), and laser-induced breakdown spectroscopy (LIBS). These can upgrade mixed “zorba” (mixed non-ferrous scrap) into higher-grade “twitch” (sorted aluminium fraction), limiting alloy downgrading. The firm estimates that plants handling 30,000–40,000 tonnes of scrap annually could process it at USD 200–USD 300 per tonne, with potential margins of USD 50–USD 150 per tonne.
What’s on the line for high-value alloys
If sorting does not improve, critical alloys used in EVs and high-performance applications risk being lost to generic cast alloys. With Europe’s deposit-return systems already outperforming North America in recovering used beverage cans, McKinsey suggests global policy harmonisation and technology deployment are vital.
As Spiller and his co-authors put it, “Expanding secondary aluminium production is crucial to achieving net zero emissions goals.”
For in-depth insights into the aluminium recycling market, read our exclusive report: World Recycled ALuminium Market Analysis Industry forecast to 2032
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