With aluminum prices up 20%, recycling startups bet on AI to cash in

Source: TechCrunch

Aluminum prices have surged by about 20% amid geopolitical tensions, pushing the metal to levels not seen in decades. Roughly 10 % of global aluminum production comes from the Gulf region, making the commodity especially sensitive to regional conflicts.

Critical mineral status and recycling landscape

Even before recent events, the U.S. government classified aluminum as a critical mineral. A large share of domestic demand is satisfied through imports, while a significant portion of the metal produced in the United States is reclaimed from scrap. According to the EPA, only about 20 % of aluminum in the U.S. waste stream is actually recovered, despite the material being one of the most recycled.

AI‑driven sorting startups

Sortera

Sortera recently opened a second facility in Tennessee, doubling its processing capacity to 240 million lb—with 90 %–100 % of that weight being aluminum. This represents a sizable slice of the 4.3 million metric tons of aluminum used in the U.S. last year (USGS source).

The Indiana‑based startup focuses on sorting aluminum scrap. It employs a suite of sensors—lasers, cameras, and X‑ray fluorescence—to feed AI algorithms that classify each potato‑chip‑sized piece of scrap by grade. Higher‑accuracy grade separation enables Sortera to capture more profit per pound.

Amp

Amp takes a broader approach, using an AI‑powered sorting system to process both recycling and general waste streams. The system combines visible‑light and infrared cameras to detect items ranging from wrappers to foil and to differentiate plastics from aluminum. As material moves along conveyor belts, robotic arms and pneumatic “puffers” divert items into separate bins. Amp reports over 90 % accuracy in recovering specific materials, including aluminum.

Market impact

“Half of the aluminum in a metro area—​in places with successful recycling programs—is just in the garbage, not even touching the recycling system,” says Matanya Horowitz, CTO of Amp. For the metals industry, facilities like those built by Sortera and Amp could become major domestic sources of a critical mineral, helping to offset reliance on imports.

“These types of projects are some of the biggest sources of domestically produced aluminum that are coming online in a given year.” – Matanya Horowitz, Amp CTO.