Novelis to build US aluminium recycling center for auto customers

The company is looking to reduce its carbon emissions by more than 1 million tonnes per year

Novelis is to build an aluminium recycling center for automotive customers in North America, which will reduce the company’s carbon emissions by more than 1 million tonnes per year and enlarge its closed-loop recycling programs, it has said.

The $365 million investment will create casting capacity for 240,000 tpy of aluminium sheet ingot. It will be built adjacent to Novelis’ existing automotive finishing plant in Guthrie in the US state of Kentucky, the company said on Tuesday January 11.

Ground-breaking to commence construction was scheduled for early this year, with commissioning expected in 2024.

Steve Fisher, president and chief executive officer of Novelis, said that the investment would allow the company to continue to increase the amount of recycled content in its products, reduce its carbon emissions and move it closer to carbon neutrality.

“Through closed-loop recycling, the company takes back the aluminium remaining after automotive parts are stamped from sheets, and remakes it into similar product for new vehicle production,” the company said.

“The center will also have the capability to process aluminium from vehicles at the end of their lifecycle. Using recycled aluminium as input material requires only 5% of the energy used to make primary aluminium, thus avoiding 95% of the carbon emissions associated with production,” it added.

Novelis hoped to reduce its energy intensity by 10% by 2026. It is the world’s largest supplier of aluminium sheet to the automotive industry, with a global market share of roughly 50%.

The company opened its automotive finishing plant in Guthrie in October last year. Also in Kentucky, it operates an aluminium beverage can recycling plant in Berea and the Logan Aluminum joint venture in Russellville.

Novelis is based in Atlanta, in the US state of Georgia, and is a subsidiary of aluminium and copper producer Hindalco Industries, which is, in turn, part of the Aditya Birla Group.

What to read next
Global refined nickel premiums were broadly steady in the week to Tuesday November 29, with the exception of European briquettes premiums which came under further pressure due to increased supply
Key data from Fastmarkets’ aluminium ingot ADC 12 pricing session in China on Wednesday November 30
The new proposal would help restore approximately 500 million gallons of blending volumes previously waived by the agency in 2016
German equipment provider SMS Group will provide a logistics and storage system for a forthcoming $238.7 million aluminium foil plant being built in the US by South Korea’s LOTTE Group to meet demand for the material’s use in electric vehicles (EVs)
Peter Hannah, senior price development manager at Fastmarkets, discusses key pricing trends in the lithium market and gives his advice for those navigating this volatile time
Fastmarkets has corrected its price indices for US- and Northern Europe-origin steel scrap, CFR Turkey, which were published incorrectly on Thursday December 1 due to a technical error.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
Proceed