Do you know that recycling a single tonne of aluminium can prevent up to 9 tonnes of CO2 emissions compared to the production from raw materials? As the race toward net-zero accelerates, recycled aluminium has moved from the sidelines to become a cornerstone of a resource-efficient, low-carbon future. In fact, a lot of primary aluminium producers and smelters are now investing more in the secondary aluminium business.
Why are primary smelters investing more in secondary aluminium?
The secondary aluminium market, long led by specialised players such as Novelis, Real Alloy, and regional recyclers, is undergoing a profound transformation. Major primary producers, including EGA, Ma'aden, Hydro, Rio Tinto, and others, are stepping into the arena, strengthening their foothold through greenfield developments, brownfield enhancements, and strategic acquisitions of secondary facilities. This wave of investment marks a clear industry-wide pivot toward circularity and low-carbon growth.
In today's context, aluminium scrap prices are climbing, and availability is tightening as demand for recycled metal from automotive, beverage cans, EVs, and "low-carbon" product buyers are constantly increasing. At the same time, multiple supply-side pressures are constraining the flow of material. Going by the recent graph, earlier this year, the US imposed a hefty 50 per cent tariff on imported aluminium, promoting it as a bold move to revive struggling domestic smelters and reshore metal production.
But in reality, the decision, which was implemented in the hope of protecting domestic producers, has instead disrupted supply chains, sent costs spiralling, and forced industries like the beverage makers into rapid strategy overhauls. Across the nation, aluminium recyclers are seeing a surge in demand as manufacturers turn to scrap to offset rising production costs. Recycled aluminium is stepping into the spotlight. According to US Geological Survey data, the country recovered 1.222 million tonnes of aluminium from scrap between January and April 2025, a 4.5 per cent increase from 1.169 million tonnes during the same period last year.
Below is a list of companies who took this jump towards recycled aluminium usage –
Emirates Global Aluminium (EGA), the world's largest 'premium aluminium' producer, announced the onset of the construction of the nation's largest aluminium recycling plant on November 21, 2023. And by May 13, 2025, the company had completed 50 per cent of construction, an impressive 42 days ahead of schedule. Set to commence operations in 2026, the facility will stand as the UAE's largest recycling plant, marking a significant milestone in the country's aluminium industry. Scheduled for completion in June, the recycling facility will be located alongside EGA's existing smelter in Al Taweelah. Once operational, the facility will process post-consumer aluminium scrap to produce low-carbon, high-quality billets under EGA's 'RevivAL' brand. Until now, much of the UAE's scrap has been exported for processing, limiting domestic value creation. With the launch of the nation's largest aluminium recycling plant, EGA is set to strengthen the UAE's economic resilience and establish a fully in-house recycling process.
Ma'aden, Saudi Arabia's state-owned mining giant, had announced the construction of its planned aluminium recycling plant at Ras Al-Khair. The facility, which is currently in the pre-feasibility stage, underscores the company's commitment to sustainability, environmental stewardship, and advancing the circular economy. In April 2024, the company received special recognition at the Sharjah Award for Excellence in Performance Improvement for its efforts toward sustainable growth and positive transformation in the mining sector. Within the Middle East, the UAE and Saudi Arabia remain the two largest hubs for aluminium recycling. AL Circle's recycling report forecasts that recycled aluminium usage in the Middle East & Africa will grow at a CAGR of 3.06% between 2019 and 2030, reaching 766,000 tonnes.
Minnesota's manufacturing sector is in the midst of a major shift, with EGA Spectro Alloys leading the charge. The company's recently completed $71 million expansion in Rosemount marks a milestone with the launch of a new aluminium recycling plant, a development significant not just for the business, but for the region's economy, the national aluminium supply chain, and the broader drive toward sustainability and a circular economy. The 90,000-square-foot facility positions Spectro Alloys among only about 40 plants in the United States capable of producing recycled aluminium billets, long, solid poles of aluminium used across automotive, construction, energy, and consumer goods industries. With the capacity to produce up to 120 million pounds of premium recycled billets annually, the plant introduces Spectro's first new product line in 53 years. Beyond its economic and trade implications, the expansion marks a breakthrough for Minnesota's circular economy. For the first time, the state can process recycled aluminium beverage cans locally, eliminating the need to ship valuable scrap out of state.
Three aluminium industry leaders, Capral, Rio Tinto, and Sims Metals have joined forces to establish a closed-loop aluminium recycling initiative in Queensland, Australia, championing the "Made in Australia" ethos. Under this collaboration, post-production aluminium scrap from Capral's Bremer Park facility will be sorted and processed by Sims Metal, then transported to Rio Tinto's Boyne Smelter in Gladstone for remelting. The recovered scrap is expected to yield over 1,000 tonnes of aluminium with 20 per cent recycled content, which will be supplied back to Capral's Bremer Park site for extrusion operations. This creates a fully localised Queensland supply chain, starting with Rio Tinto mining bauxite in Weipa, followed by refining into alumina and smelting into aluminium in Gladstone, before extrusion at Bremer Park. Beyond bolstering domestic manufacturing capabilities, the project represents a significant step toward sustainable aluminium resource utilisation, ensuring the material remains in continuous circulation within the local economy.
Recycled aluminium is no longer just an eco-friendly choice; it's becoming central to global supply chains, cost competitiveness, and the shift toward a circular economy. Whether driven by policy shifts, market forces, or sustainability goals, the scrap revolution is here, and the aluminium industry's most prominent players aren't just watching from the sidelines.
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