Secondary aluminium, produced using scrap from manufacturing waste or end-of-life aluminium products, offers substantial environmental benefits. Compared to primary production, it requires about 95% less energy and saves over 16t of greenhouse gases for every 1t of recycled production. This cost-effective and cleaner method is driving significant growth in the low-carbon aluminium market.
Secondary aluminium currently constitutes
approximately 38% of global aluminium production. Known for its near infinite
recyclability, aluminium stands as one of the world's most recycled materials,
with about 75% of all historical aluminium still in use today.
The rise of
secondary aluminium production has surged in recent years, claiming a larger
portion of total aluminium output. This trend is projected to continue—we
expect annual secondary aluminium production to surpass primary production by around
2045.
What’s
Driving Demand?
Increased investment in recycled metals is driven
by several key factors. Firstly, there is a growing recognition of primary
metal supply constraints due to the shift towards electrification and other metals-intensive
technologies, making recycling a crucial solution to stabilise supply chains. Additionally,
as global light-duty electric vehicle sales are projected to increase to 24.1m
in 2026 from 14.1m in 2023, the demand for recycled metals is expected to
further intensify.