Hydro doubling down on aluminium recycling to satisfy growing demand

The Russia-Ukraine crisis and increased number of sanctions on Russia had put the aluminium sector under pressure, calling into question the fate of the industry. As a result of which companies like Norsk Hydro ASA of Norway, Novelis Inc. and Matalco Inc. of Canada are expanding their operations in the United States to create more of the lightweight metal needed by automakers, beverage can producers, and other industries.

With Russia providing 6 percent of the aluminium manufactured at smelters in the United States, owing to the interrupted productions and shipments from Russia, aluminium businesses are doubling down on recycling to satisfy increased demand, melting more trash to improve their aluminium output. According to the Aluminum Association trade organisation, aluminium consumption in the United States increased by 11% last year, reversing a pandemic-related decline in 2020.

Norsk Hydro began construction on a new factory in Cassopolis, Michigan, last year that will be capable of producing 120,000 metric tonnes of new aluminium from scrap every year. By the end of 2023, the $140 million project should be finished.

More than 40% of the country's aluminium is already generated in this manner, making the United States one of the world's largest users of aluminium scrap. According to official data, the United States is also one of the world's largest exporters of aluminium scrap, with 2 million metric tonnes transported outside last year.

“When you look at scrap capture and processing, it becomes more economical than it used to be,” said Mike Stier, Vice President of finance and strategy for Norsk Hydro’s North American extrusion unit.

Aluminium executives trying to enhance their own firms' output have a problem in keeping more of that waste, notably from shredded vehicles, for domestic manufacture. According to experts, melting scrap for aluminium consumes around 90% less power than making aluminium in a smelter from refined bauxite ore.