U.S. Department of Energy - Energy Efficiency and Renewable Energy

Industrial Technologies Program – Aluminum Industry of the Future

Aluminum Industry Profile

Aluminum is an industry that truly impacts every community in the country, either through physical plants and facilities, recycling, heavy industry, or consumption of consumer goods. In 2007, the U.S. apparent consumption of aluminum totaled 5,110 thousand metric tons; down 15% from the previous year. Apparent consumption is calculated as the sum of domestic primary metal production, recovery from old aluminum scrap, net import reliance (excluding imported scrap), less exports. The U.S. obtains aluminum from three sources: primary metal made from ore, secondary metal produced from aluminum scrap, and imported aluminum metals. In 2007, primary aluminum production totaled 2,554 thousand metric tons, while secondary production (from old scrap) amounted to 1,600 thousand metric tons. Imports for consumption totaled 4,490 thousand metric tons and exports accounted for 2,840 thousand metric tons.

Geography

Aluminum impacts every community, either through physical facilities, recycling, heavy industry, or consumption of consumer goods. The majority of U.S. primary aluminum production capacity is located in the Pacific Northwest and Ohio. The estimated 2007 world production of primary aluminum totaled 37,900 thousand metric tons, up 12% from 2006. North America accounted for 15% of the world's 2007 production. The remaining global share was the following: Asia 53%, European Union 11%, Latin America 7%, Oceania 7%, Africa 5%, and non-EU European nations 2%.

Production and Supply

The global primary aluminum production has been growing at a compound annual growth rate of 6.2% between 2003 and 2007. Domestic primary production has declined at an annual rate of 1.1%, while domestic secondary recovery declined at an annual rate of 6.4% in the same period. Aluminum imports continue to rise at an annual rate of 1.7%.

Energy

As a result of technical progress and the use of recycling, the U.S. aluminum industry has reduced its energy intensity by over two thirds over the past 40 years. The production of primary aluminum relies on an electrolytic process and is electricity-intensive. The aluminum industry's energy end use accounts for over 340 trillion Btu per year.

Markets

After 100 years, the aluminum market is still in a growth phase as aluminum finds new applications and replaces other materials. As shown in Table 1, the top markets for the aluminum industry include transportation, containers and packaging, and building and construction.

Table 1 – North American Aluminum Major Markets

Source: The Aluminum Association, Inc.

Employment

At year end 2007, 6 companies were operating 14 domestic primary aluminum smelters in 11 States. In 2006, the alumina and aluminum production and processing industry employed 62,716 people.

Recycling

Secondary aluminum is made from recycled aluminum products. The industry has invested millions of dollars to create over 10,000 recycling centers throughout the country. The growth of secondary metal production represents the greatest change in the structure of the industry. Recovery of aluminum from scrap totaled 3,850 thousand metric tons, with new scrap (manufacturing) accounting for 58% and old scrap (post-consumer) accounting for 42%.

Industry Analysis in Brief

The Department of Energy's Industrial Technologies Program (ITP), in partnership with the Energy Information Administration, has created a comprehensive report that captures information on the economics, energy use, technologies, and management activities that affect the aluminum industry.