Rising gas prices have dominated headlines since late February when the Trump administration commenced its conflict with Iran, but gas isn’t the only commodity being impacted. Approximately 10% of the world’s aluminum is produced in the Gulf region, leading to significant price increases, reaching levels not seen in several decades.
Prior to the Iran conflict, aluminum was already designated by the U.S. government as a critical mineral. A significant portion of U.S. aluminum demand is satisfied through imports, with domestic production heavily reliant on recycling. This situation presents a beneficial opportunity for recycling startups.
“Aluminum might constitute 1% of the waste stream, but it can trade for over $1,000 per ton,” stated Matanya Horowitz, CTO at waste sorting startup Amp, in a conversation with TechCrunch. “It becomes one of the most important individual commodities.”
Although aluminum is one of the most recycled materials in the U.S., only about 20% is actually recovered, according to the EPA. Waste sorting companies are proposing AI as a solution to improve these recovery rates.
Sortera, a startup in the metals recycling sector, has inaugurated its second facility in Tennessee, the company shared exclusively with TechCrunch. This new site doubles Sortera’s processing capacity to 240 million pounds, with 90% to 100% of that being aluminum. This capacity represents a significant portion of the 4.3 million metric tons consumed in the U.S. last year.
The Indiana-based startup focuses on sorting aluminum scrap using a variety of sensors, such as lasers, cameras, and X-ray fluorescence. These tools feed into AI algorithms that classify each small piece of scrap to determine its specific grade of aluminum. By achieving higher accuracy in grade separation, Sortera increases its profitability per pound.
Amp utilizes a different strategy, employing an AI-powered sorting system designed to process both recycling and general waste streams.
Their system employs sensors, including visible light and infrared cameras, to distinguish between wrappers, foil, plastic, and aluminum. As waste moves through the system on conveyor belts, robotic arms and puffers sort materials into different bins. Amp claims its system can accurately recover over 90% of specific materials, including aluminum.
“In metro areas with successful recycling programs, half of the aluminum ends up in the garbage rather than the recycling system,” Horowitz explained. Recycling facilities developed by companies like Sortera and Amp could enhance supplies of this critical mineral necessary across the economy.
“Such projects are among the largest sources of domestically produced aluminum becoming available each year,” he added.