Decarbonizing Aluminum Through Circularity and Recycling

McKinsey & Company has published an in-depth analysis on decarbonizing aluminum production through increased circularity and recycling.

• Global aluminum demand is projected to grow at 2.1% CAGR from 2025 to 2035, reaching 130 million metric tons, driven by energy transition and automotive sectors. Secondary aluminum supply is expected to grow significantly, especially from postconsumer scrap in China, supported by regulations like the EU’s Critical Raw Materials Act and the US Inflation Reduction Act.
• Challenges include high shares of mixed scrap limiting recycling quality, regional discrepancies in collection rates, and the need for advanced sorting technologies. Partnerships such as Constellium with OSR and Hydro with Padnos demonstrate collaborative efforts to improve sorting and upcycling of aluminum scrap, aiming to increase recycling rates and reduce carbon emissions.