Aluminum Recycling Efforts Expand Amid Supply Pressures and Policy Debates

A pile of discarded soda and energy drink aluminum cans awaits recycling. Boniface Muthoni/SOPA Images/ZUMA

This story was originally published by Canary Media and is reproduced here as part of the Climate Desk collaboration.

A global supply shortage and U.S. tariffs have affected the aluminum market this year, increasing pressure on domestic production. Plans to build or reopen smelters are advancing, though they depend on access to large amounts of low-cost electricity at a time when data centers are competing for power resources.

Recycling aluminum requires about 5 percent of the energy used to produce primary metal through smelting. The United States generates substantial volumes of aluminum scrap, yet millions of tons are directed to landfills due to inconsistent collection systems and challenges in separating high-quality material. Demand for aluminum continues in sectors including beverage containers, solar panels, vehicle components, electrical cables, and data center infrastructure. Policy analysts have recommended federal and state actions to raise recovery rates and adjust reliance on imported or primary metal.

Joe Quinn, executive director of the Center for Strategic Industrial Materials at SAFE, described the situation as a supply chain security matter. The organization released a report this month on the U.S. aluminum balance. Quinn stated that the main domestic obstacle is increasing participation in recycling programs. He noted environmental advantages from recycling but emphasized the need to return material to manufacturing streams.

Mechanical sorting systems face limitations because aluminum scrap is often mixed with copper, brass, and titanium. Identifying specific alloys used in electrical equipment or vehicle parts adds complexity. Much U.S. scrap is exported for manual sorting or processed into lower-value items after shredding and melting.

Several companies are introducing sensor-based and AI-driven sorting methods. Sortera Technologies secured $45 million in funding last year to open a second facility in Lebanon, Tennessee, focused on extracting specific aluminum alloys from mixed scrap. Greyparrot, based in the United Kingdom, deploys AI cameras in existing plants to monitor aluminum cans, glass, and plastic. Cofounder Ambarish Mitra said mechanical systems can miss material when overloaded or when components malfunction.

Greyparrot installed its equipment earlier this year at Circular Services’ Brooklyn facility, which handles most of New York City’s curbside recycling. The company reported that 89 percent of aluminum passing through the plant is recoverable, compared with lower average rates at other U.S. sites. Mitra said additional revenue is lost when recoverable aluminum reaches landfills and that extraction improvements have reduced residue volumes at facilities using the technology.

The Center for Strategic Industrial Materials has urged federal incentives and expanded research funding for advanced sorting. Director Benjamin Carlson said greater use of recycled aluminum could reserve primary metal for defense and aerospace applications that require high purity. Carlson also identified low participation rates as a core constraint.

Beverage can recovery has declined in recent years. The Aluminum Association and Can Manufacturers Institute reported that Americans discarded approximately 61 billion cans in 2023, valued at $1.2 billion. Ten states operate deposit-return systems that provide refunds for returned containers. Connecticut raised its deposit from 5 to 10 cents in 2024; redemption volumes doubled by the end of 2025. State officials have noted that a portion of the increase appears to involve containers brought from neighboring states, which shifts costs to wholesale distributors responsible for refunds.

New York maintains a 5-cent deposit unchanged since the 1980s, with redemption centers receiving 3.5 cents per can. Ryan Castalia, executive director of the Brooklyn nonprofit Sure We Can, reported a roughly 25 percent drop in volume over 18 months, from 13 million to about 10 million containers annually, coinciding with higher deposits across the state line. He said fewer redemption sites operate each year and that lower volumes reduce revenue for collection points while increasing landfill disposal.

Janet Domenitz of the Massachusetts Public Interest Research Group stated that the state’s 5-cent fee, unchanged for 43 years, has not kept pace with container proliferation or inflation. She suggested a regional New England system could coordinate rates and improve cross-border consistency. Sen. Jeff Merkley (D-Ore.) has sponsored legislation for a national deposit program, last introduced in 2023, citing goals of retaining aluminum in domestic supply chains and reducing plastic use. Merkley indicated continued support for such measures.

Implementation of deposit systems involves administrative costs for distributors, enforcement against cross-border movement, and adjustments to redemption infrastructure. States without deposits rely on curbside programs whose participation and sorting efficiency vary. Primary aluminum production remains necessary for certain high-specification uses, while recycled supply depends on collection volumes and processing technology performance.