The aluminum category is anticipated to grow at a CAGR of 5.8% from 2023 to 2030. The Asia Pacific region accounted for the majority of the overall share in 2022. The rising shift towards electric vehicles and the increasing demand from end-use industries such as automotive, and construction are driving the category growth. One of the major developments is the rise in the use of inert anode technology in the smelting process to reduce CO2 emissions.

Direct casting is a widely used technology that directly casts metal from the molten state without the requirement of intermediate steps such as extrusion or rolling. This results in significant energy savings and materials cost. Additionally, recycling is gaining traction as this reduces the cost of production. For instance, in 2023, a pilot demonstration facility is being planned for Alcoa’s ASTRAEA technology, a patented technology that can purify automotive scrap through the use of a smelter to produce a high-purity product.

In terms of carbon intensity per ton, aluminum is the most carbon-intensive of the top three highest emitters. Aluminum produces approximately 16 tons of CO2 emissions per ton. The increase in production combined with refining and smelting is also increasing the amount of carbon footprint. Refining and smelting account for 90% of CO2 emissions. For instance, in 2021, the category produced 275 Metric Tons of CO2 emissions. To curb such high emissions, manufacturers are switching to inert anodes instead of carbon anodes to achieve Net Zero Emissions. For instance, in April 2021, Rusal produced 1 ton of aluminum per day per cell using inert anodes technology.

Order your copy of the Aluminum Procurement Intelligence Report, 2023 – 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

Carbon Capture and Storage (CCS) in the production process captures carbon dioxide (CO2) emissions generated during the process and stores them to prevent their release into the atmosphere. For instance, in 2022, Norsk Hydro ASA announced the development of its carbon capture and storage technology solutions that can be reconstructed in its production plants in Europe. The company has evaluated around 50 CCS technologies and has created a roadmap for testing as well.

Raw materials, production processes, labor, and equipment form the largest cost components of this category. Other key costs include quality control and testing, shipping, and overheads. Bauxite is the main source of the product. China and Australia are the major bauxite-producing countries that produced 74,000 and 21,000 kilotons respectively in 2021. Bauxite prices have been on an upward trend in recent months due to increased demand from industry. The average price of bauxite is between USD 150 -500 per ton.

Companies are focusing on plant expansions to increase their production capacity and product availability. For instance, in August 2022, Alcoa Corporation increased casting capabilities in North America through investment in Canadian plants. Similarly, companies are also partnering with other companies to supply aluminum parts. In February 2023, Rio Tinto partnered with BMW Group for supplying premium aluminum car parts.

Browse through Grand View Research’s collection of procurement intelligence studies:

• Ammonia Procurement Intelligence Report, 2023 – 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

• Chlorine Procurement Intelligence Report, 2023 – 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Aluminum Procurement Intelligence Report Scope 

• Aluminum Category Growth Rate (CAGR): CAGR of 5.8% from 2023 to 2030

• Pricing growth Outlook: 3 – 6%

• Pricing Models: Volume-based pricing model, spot pricing model

• Supplier Selection Scope: Cost and pricing, Past engagements, Productivity, Geographical presence

• Supplier selection criteria: Production capacity, type of process (casting, extrusion, forging, others), product type (plate/sheet), source type (alumina/ bauxite), technical specifications, operational capabilities, regulatory standards and mandates, category innovations, and others.

• Report Coverage: Revenue forecast, supplier ranking, supplier matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model

Key companies profiled

• Rusal

• Rio Tinto

• Alcoa

• Aluminum Corporation of China

• Emirates Global Aluminum

• China Hongqiao Group Limited

• China Power Investment Corporation

• Vedanta Aluminum


• South32

• Hindalco

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends

• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships

• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing

• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions