The future of aluminium: reshoring, recycling and efficiency pave the way for increased capacity

Frederik Esterhuizen, Global Business Line Manager for Metals, Process Industries, ABB, discusses the transformative shift towards a more sustainable aluminium industry in North America. Reshoring, recycling, and a focus on efficiency can not only improve the region's environmental responsibility but also increase production capacity and meet the growing demand for high-quality aluminium coil.

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A global push for eco-friendly practices has led to the rise of "green aluminium" – low-carbon aluminium production that minimizes environmental impact.

This article was first published in the May/June 2024 issue of Aluminium International Today.
Aluminium’s versatility makes it a critical material across countless industries, with demand projected to soar 15% globally by 2029. From lightweight car parts to beverage cans, aluminium’s unique combination of strength, malleability and recyclability has made it a cornerstone of modern life. However, this essential metal comes at a cost – its production is highly energy-intensive, traditionally relying on a melting process that releases significant amounts of greenhouse gasses. In fact, aluminium production accounts for approximately 1.1 billion tonnes of global CO2 emissions per year.

The aluminium industry is undergoing a transformative shift, driven by a perfect storm of environmental concerns, geopolitical tensions, and technological advancements. Consumers increasingly demand sustainable products, while manufacturers face mounting pressure to reduce their environmental footprint. At the same time, rising geopolitical tensions are disrupting traditional supply chains, highlighting the need for more secure and reliable sources of aluminium.
 
These factors have converged to present an opportunity for the North American aluminium industry to reinvent itself, embracing sustainability and a regionally focused approach. While the US is already making considerable investments to boost domestic production across the country and is making energy-efficient upgrades to existing equipment, there is still work to be done. This article explores how reshoring, recycling, and a focus on efficiency can not only improve environmental responsibility but also increase production capacity and meet the growing demand for high-quality aluminium coil in North America.

The Urgency for Change

Traditionally, North America dominated the global aluminium market. However, in the last 25 years, production has dwindled, and the region has become increasingly reliant on overseas sources to meet demands. This shift, once deemed necessary as a cost-first strategy during the globalization era, is now facing scrutiny due to environmental concerns surrounding overseas aluminium production.

While some countries prioritize environmental regulations, others do not, creating a situation where the sustainability credentials of overseas aluminium become murky.

Consequently, a global push for eco-friendly practices has led to the rise of "green aluminium" – low-carbon aluminium production that minimizes environmental impact. While green aluminium surpluses currently exist, driven by a surge in production in 2023, they are not guaranteed to last forever. Businesses need long-term assurances of stable prices and a secure supply of this sustainable material. This urgency for change underscores the need to strengthen domestic aluminium production capacity in North America, ensuring access to a reliable and environmentally responsible supply.


Frederik Esterhuizen is Global Business Line Manager for ABB’s metals industry portfolio, leading a global team of experts committed to helping metals manufacturers improve sustainability, quality and safety in their operations. Throughout his career, he has held a variety of roles in Engineering, Operations and Management across multiple industries. He holds a National Higher Diploma in Electrical and completed Project Management studies with distinction.

The Reshoring Imperative

The North American aluminium industry is at a crossroads. While demand for the versatile metal is projected to surge, traditional reliance on overseas suppliers is being overshadowed by environmental supply chain vulnerability concerns. Reshoring aluminium production offers an excellent solution to this issue.

Bringing aluminium production closer to end-users strengthens domestic supply chains, minimizing disruptions caused by global events. This trend, triggered by the COVID-19 pandemic and further amplified by ongoing geopolitical tensions, is gaining momentum. According to a recent survey, a staggering 69% of U.S. manufacturers have begun reshoring their supply chains, with a remarkable 94% success rate. The Reshoring Institute, whose mission is to bring manufacturing jobs back to the United States, reports that 2022 saw record highs in reshoring and foreign direct investment announcements, with projections for 300,000 new jobs created in 2023 alone.

Beyond its strategic advantages, reshoring offers environmental benefits. Shorter transportation distances translate to reduced emissions and a smaller carbon footprint, contributing to a more sustainable aluminium industry. By embracing reshoring, North America can ensure a reliable supply of aluminium while minimizing its environmental impact.

Recycling: Aluminium’s Renaissance

Aluminium’s infinite recyclability makes it the king of the circular economy. Recycling not only preserves the metal's properties but also offers a dramatic 95% reduction in energy consumption compared to virgin aluminium production. This solidifies aluminium as a key material for a low-carbon future.

By integrating efficient recycling practices, North America can unlock a multitude of benefits. Recycling aluminium minimizes the need for virgin materials, significantly reducing the environmental footprint associated with mining and processing. This translates to cleaner air, water, and less land degradation. Furthermore, utilizing recycled aluminium often proves more cost-effective than virgin resources, offering a financial advantage to manufacturers. Finally, a closed-loop system for aluminium creates a reliable source of materials, contributing to increased production capacity and a more secure supply chain.

North America is uniquely positioned to capitalize on this opportunity. Boasting the world's highest Recycling Input Rate, with 57% of its aluminium production originating from scrap, the region possesses a strong foundation for a robust circular aluminium economy. However, to fully unlock this potential, significant investments are needed. Expanding capacity for re-smelting and refining recycled aluminium is crucial to meet future demand.

The automotive sector, a champion of circularity within its own right, presents a significant growth opportunity. As the demand for lightweight and sustainable materials for electric vehicles intensifies, readily available, high-capacity casting complexes in North America will be critical to meet this growing need.

A Collaborative Approach for Lasting Change

Realising a sustainable and efficient aluminium industry in North America requires a collective effort from every corner of the sector.

Industry leaders have the power and influence to be a driving force for change. Continued investment into cutting-edge technology that will enhance efficiency and minimize environmental impact can pave the way for the entire industry. Pioneering these initiatives will not only benefit their own operations but also serve as a model for others to follow, accelerating the industry’s collective transformation towards a sustainable future.
 
Of course, none of this is possible without the help of technology providers, which are the essential catalysts for efficiency throughout the aluminium production process. This includes advancements in low-carbon aluminium melting processes and technologies, like the electromagnetic stirrers (AL-EMS) provided by ABB. ABB’s technology has proven to increase productivity by up to 25%, lower energy consumption by 10%, and reduce dross generation by 15% in more than 400 aluminium furnaces worldwide. Unsurprisingly, demand for such solutions is on the rise. In February 2024, GNA alutech, aluminium furnace provider, sought to optimise efficiency, increase productivity, lower energy consumption, and help reduce operating costs, and ordered four of ABB’s electromagnetic stirrers to do just that.

Advancements in low-carbon aluminium melting processes and technologies is made possible through collaboration. ABB metallurgists predict and ensure electromagnetic stirring force and related improvements for each furnace project.

In addition to the advancements mentioned previously, technology providers also play a role in developing more efficient electrical solutions within aluminium production facilities. One promising area of development is the adoption of DC (direct current) to AC (alternating current) conversion technology. While traditional aluminium smelting relies on AC power, the conversion process itself can be energy intensive. By implementing DC power supplies such as ABB’s high power rectifiers at specific stages of production, facilities can reduce energy consumption and minimise their overall carbon footprint.

The final piece of the puzzle is the work that governments and policymakers are doing behind the scenes, which can significantly accelerate the rate of progress. Favourable policy creates a fertile environment to capitalize on the rich industry appetite for reshoring growth and sustainable technology adoption.

North America is uniquely positioned to become a global leader in clean aluminium production. Abundant natural resources, a strong foundation in recycling, and a spirit of innovation provide a solid platform for success. By embracing reshoring, recycling, and a commitment to sustainability, the aluminium industry can not only foster environmental stewardship but also unlock significant benefits. Increased production capacity will ensure a secure and reliable supply chain. Through collaboration and innovation, all stakeholders within the industry can work together to ensure a sustainable and secure future for aluminium in North America. This will not only benefit the industry itself but also contribute to a greener and more sustainable future for the entire region.

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