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Aluminum is lightweight, durable and flexible, making it one of the most commonly produced metals in the world. The material is used in the construction industry, automotive manufacturing, appliances and consumer goods.
One of the benefits of aluminum is its lightweight. This characteristic makes vehicles lighter and can reduce the gas consumption of a car. This material also meets other industries' demands. Aluminum's flexibility and electrically conductive properties give it an advantage in electronics industries, while its recyclability makes it popular for use in making food-safe foils and cans.
While contribution by country varies, world primary aluminum production measured about 65.3 million tons in alone, with China producing the lion's share (over 55%). The metal is produced in Gulf Cooperation Council (GCC) countries, Europe, North America, Latin America, Africa and Asia. Aluminum comes from bauxite ore, which is made into alumina in alumina refineries and then smelted into aluminum.
Many countries produce aluminum, with each nation playing a unique role in the global marketplace. Examining primary aluminum production by country shows that each nation participates in the industry in unique ways:
China is the world's largest primary aluminum producer, manufacturing 37 million metric tons in . One reason China produces so much aluminum is the country's strong manufacturing industry, which requires the metal for vehicles, building and construction, electronics and consumer goods. The nation also exports aluminum in semi-fabricated forms via its excellent shipping capabilities. China&#;s aluminum production is mainly coal-powered. The largest domestic producers include China Hongqiao, Chalco, Yunnan Aluminum, Xinfa, and East Group, among others.
Since , China&#;s government has sought to control the country&#;s aluminum production capacity to address environmental and overproduction concerns. Despite this effort, the nation still leads by far the world in aluminum production.
Russia is the second-largest nation for primary aluminum production, with 3.9 million metric tons produced in (mainly using hydroelectricity). RUSAL, based in Moscow, is the largest primary aluminum producing company outside China.
As another of the largest aluminum producers located in Asia, India produced 3.6 million metric tons of primary aluminum in . India's power, consumer goods, transportation
and construction sectors create high demand for aluminum. The bulk of India&#;s primary aluminum production is coal-powered. The local companies dominating primary aluminum production are Vedanta, Hindalco, and Nalco.
Canada produced 3.11 million metric tons of aluminum in . It's home to 10 primary aluminum smelters across the country, all located in the provinces of Quebec and British Columbia. Canada also has a low carbon footprint in its aluminum production compared with other nations, amid its large use of hydroelectricity for the smelting process.
The United Arab Emirates (UAE) produced about 2.5 million metric tons of primary aluminum in . Aluminum production accounted for 1.4% of the UAE&#;s gross domestic product (GDP) in . While local construction and other industries rely on the material, the UAE exports most of its aluminum to 70 countries around the world. Emirates Global Aluminum, a manufacturing giant that has operated for decades, is one of the largest companies in the UAE.
Australia produced 1.6 million tons of aluminum in . Over 15,000 people are employed in the sector, which includes four aluminum smelters, all located near the coastline. These locations are Bell Bay in Tasmania, Boyne Island in Queensland, Portland in Victoria and Tomago in New South Wales. Access to the coastline allows these smelters to access electricity and trade routes &#; especially those connecting the continent to Asia &#; to export the finished product.
This island nation produced 1.5 million tons in . The Kingdom of Bahrain is well-positioned to be a key aluminum exporter since it can easily send large volumes of the metal to nearby markets like those in the Middle East, Europe and North America markets. Aluminum Bahrain B.S.C. (Alba) is the largest primary aluminum producer in the county.
Norway produced 1.3 million tons of aluminum in . This nation has one of the most energy-efficient aluminum production processes in the world and one of the lowest carbon footprints amid the usage of clean energy for the smelting process. Norsk Hydro ASA and Alcoa Norway ANS are the two producers of primary aluminum in the country, both with multiple facilities.
The USA produced 1.0 million metric tons of primary aluminum in . Still, the U.S. is heavily dependent on aluminum imports. Between and , the American aluminum production industry saw a carbon footprint drop of 49% as several smelters exit the market. There are now only six operating primary aluminum smelters in the US. Top producers in the country include Alcoa, Century Aluminum and Magnitude 7 Metals. These companies have six aluminum smelters in the United States.
Iceland has three aluminum smelters producing over 800,000 metric tons of primary aluminum per year. Iceland has attracted smelters owned by U.S. companies and entities from other countries because its electricity is cheaper and clean (geothermal and hydro). This difference results from the nation's use of dams that harness glacial meltwater's power. Iceland also has ports, which allow international companies to ship their aluminum globally.
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Gain strategic intelligence from a detailed analysis on global primary aluminum production trends and figures&#;broken down by region, key countries, and key smelters,
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More than a dozen companies, including Fortune 500 companies such as Ford, GM, Pepsi, and Ball Corporation, recently wrote a letter to Secretary of Energy Jennifer Granholm, asking for federal investment in clean aluminum. This letter signals the growing urgency around a domestic clean aluminum supply. The market has spoken&#;and companies are asking for funding and support to save this key American industry that will only grow more important as demand is projected to spike.
These pioneering companies understand that the U.S. is becoming increasingly dependent on foreign aluminum supply, and as demand increases, supply could come from countries that show no substantive signs of cleaning up their industry, such as China (58% of the global market), and Russia (5% of the global market).
While the six remaining smelters in the U.S. currently constitute a small and shrinking percentage of global primary aluminum capacity, it wasn&#;t always the case. As recently as , the U.S. was the largest global producer of primary aluminum. In , the U.S. had less than 2% of the global market share.
&#;As significant buyers of primary aluminum, we strongly support federal investments via the Inflation Reduction Act (IRA) to ensure that the United States will be a leader in producing this critical material, which is essential to America&#;s economic growth,&#; reads the letter. &#;Today, primary aluminum production in the United States is in crisis. While global demand for primary aluminum is forecast to grow over the coming decades, domestic primary aluminum production has continued to decline and is at risk of disappearing. Spiking electricity prices, lack of access to low-cost renewable energy, and insufficient federal investment have pushed the remaining six primary smelters to the brink.&#;
As funds from the IRA are distributed to clean up American industry and create jobs, it would be easy to dismiss aluminum as a small industry because of its current state. However, the growing global demand for primary aluminum (that has not been recycled) is projected to grow at an unprecedented rate. U.S. production must grow with it to provide the very aluminum needed to build the clean energy infrastructure the IRA supports, from electric cars to solar panels and transmission lines. Without this supply, the vital clean energy revolution ahead will be reliant on higher-carbon aluminum at a time when emissions reductions are essential.
Fortunately, these forward-thinking companies see that their customers will increasingly demand cleaner supply chains, and U.S. manufacturers will need a reliable domestic supply of aluminum for their products. Demand from customers is growing, and these consumer-facing companies are keeping pace. Aluminum producers such as Alcoa see the writing on the wall too. Its sustainability report speaks to the need to &#;reduce risk and future liabilities by minimizing social and environmental impacts.&#; In other words, consumer-facing companies and aluminum producers see sustainable aluminum as not only an aspirational responsibility but also core to their business model and America&#;s competitive advantage in the global economy.
When environmentalists, national security advocates, industrialists, labor, and communities agree, it&#;s clear that the missing piece is federal investment. Let&#;s hope the Department of Energy is able to see the advantage in reshoring jobs, reviving a once-strong American industry, and investing in the clean energy future.
Annie Sartor is the aluminum campaign director for Industrious Labs, an organization focused on reimagining the industrial sector as a foundational part of the U.S. clean energy economy.
The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.
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