The economic impact of aluminium recycling

Aluminium recycling is not just a process of reusing materials; it is a powerful engine driving economic growth, supply chain resiliency and environmental sustainability. At Novelis, we have long championed the benefits of recycling aluminium, recognising its critical role in shaping a sustainable and prosperous future, writes Chris Cerone, the company’s vice president, public affairs & communications.

Creating jobs and boosting the economy

The aluminium recycling industry is a significant contributor to job creation and economic activity. According to data from the Aluminum Association, the aluminium recycling sector in the US accounts for 37.5 per cent or 60,000 of the industry’s 164,000 jobs. Novelis alone employs approximately 5,000 people in the US, with another 1,000 people to be hired at the fully integrated aluminium facility the company is building in Bay Minette, Alabama. These positions range from collection and processing to manufacturing and research, providing diverse, high-paying employment opportunities and stimulating local economies. In its report, “Aluminum Beverage Can: Driver of the U.S. Recycling System,” the solid waste consulting firm Gershman, Brickner & Bratton (GBB) concluded that without the revenue from used beverage cans, most material recovery facilities (MRF) in the US would not be able to operate without changes to their business models. MRFs sort single-stream recyclables for sale to recyclers.

Moreover, the economic benefits of aluminium recycling extend beyond direct employment. For every job created within the industry, additional positions are supported in related sectors, including transportation, retail and services. The Aluminum Association calculates this multiplier effect as 3.5 indirect jobs for every direct industry job, underscoring the importance of recycling facilities as economic anchors in many communities, though the full potential of such facilities is far from being realised.

Nationwide, the US recycles only about 45 per cent of aluminium cans annually, which means there is a tremendous upside to achieving meaningful economic and environmental benefits. This is confirmed in a study entitled “Recycling Aluminum Cans Is Good Business” by Ball Corporation. It highlights the potential additional economic benefits the US could realise simply by improving the country’s aluminium recycling rate. The report postulates that reaching a recycling rate of 90 per cent by 2030 would create massive opportunities to improve our environment and grow our economy, and the numbers are impressive. For instance:

Recycling 90 per cent of aluminium cans would create about 104,000 jobs, double industry wages and generate USD 1.6 billion in economic activity. 

Ball Corporation. (n.d.). Recycling Aluminum Cans Is Good Business. Retrieved from Ball Corporation [ball.com].

Supply chain resiliency and cost efficiency

One of the most compelling advantages of aluminium recycling is its supply chain and resource use efficiency. This has taken on greater significance given aluminium’s designation as a critical material by the US, Canada, Europe and other countries. Without recycling, it will not be possible to meet the growing demand for aluminium – and low-carbon secondary aluminium, in particular. Primary aluminium production remains quite limited in the US, and importing from less reliable producers is no longer a viable option, especially given the proliferation of tariffs and other market access barriers.

Additionally, aluminium can be recycled repeatedly with no degradation in the quality of the material. This stands in stark contrast to most other materials that have recyclability limitations, including materials that cannot be recycled into the same product, must be “downgraded” into a different product, or can only be recycled a few times. Aluminium’s recyclability advantage can and should be maximised to shore up supply chains for critical materials and reduce the need for new raw materials and the environmental impacts of mining and refining. This is why Novelis is proud to have “closed-loop” arrangements in place with many of its customers to ensure that pre-consumer scrap generated during their production processes is returned to Novelis for recycling, casting, and rolling.

Environmental impact and sustainability

At Novelis, we are committed to reducing our carbon footprint and promoting environmental stewardship. Aluminium recycling plays a pivotal role in achieving these goals. Novelis recycles 2.3 million tonnes of aluminium scrap each year, the weight equivalent of six Empire State Buildings. The company also recycles more than 82 billion used beverage cans each year on a global basis, and this number will approach 100 billion when our plant in Bay Minette is up and running. Stacked end-to-end, these recycled cans could go around the Earth more than 250 times. By recycling aluminium, we significantly cut greenhouse gas emissions associated with primary aluminium production. That’s because producing aluminium from recycled material requires only 5 per cent of the energy and emits 95 per cent less greenhouse gases relative to the process of making primary aluminium.

Recycling also minimises waste sent to landfills, the capacity of which is declining in parts of the country. And, while the 45 per cent recycling rate for used beverage cans should be much higher – and in line with many other countries – it does translate into reduced landfills, lower disposal costs and less environmental degradation.

Moving forward together

Aluminium recycling is a cornerstone of the circular economy – a system where resources are used more sustainably, waste is minimised, and products are designed for long-term use and recyclability. By promoting a circular economy, we can ensure that sustained economic growth, supply chain resiliency and environmental health go hand in hand. Work remains, for sure. At Novelis, we are dedicated to advancing recycling through innovation, policy incentives, infrastructure and partnerships. We look forward to continuing our work with other stakeholders to accelerate and maximise the important benefits of recycling aluminium.

As we continue to explore new ways to enhance recycling efficiency and expand its reach, Novelis invites all stakeholders – industries, governments, and consumers – to join us in harnessing the full potential of aluminium recycling.

Together, we can create a more sustainable and prosperous future.

This article is originally published on The Metal Packager. For more information about the publication, visit www.metalpackager.com.