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

Aluminum prices have surged by 20%, driven by geopolitical tensions and supply chain disruptions, presenting a unique opportunity for recycling startups. The Gulf region, which is responsible for producing about 10% of the world’s aluminum, has seen prices reach historic highs. Even before the recent conflicts, aluminum was already designated as a critical mineral by the U.S. government. With a significant portion of U.S. aluminum demand reliant on imports, the ability to recycle this metal has become crucial. For innovative startups in the recycling sector, this trend is a boon. Matanya Horowitz, CTO of the waste sorting startup Amp, shared insights with TechCrunch, stating, "Aluminum might be just 1% of the garbage stream, but it frequently trades for over $1,000 per ton. It’s one of the most valuable commodities in the recycling landscape." Despite aluminum being one of the most recycled materials in the U.S., only around 20% is effectively recovered, according to the Environmental Protection Agency (EPA). To tackle this challenge, several waste sorting startups are leveraging artificial intelligence to enhance recovery rates. Sortera, a metals recycling company, has recently expanded its operations with a new facility in Tennessee, doubling its processing capacity to 240 million pounds, primarily focusing on aluminum. Sortera employs an array of sensors—including lasers, cameras, and X-ray fluorescence—to facilitate AI algorithms in accurately classifying aluminum scrap. This precision allows them to maximize profits by separating aluminum grades more effectively. On the other hand, Amp utilizes an AI-driven system that analyzes both recycling and general waste streams. Their technology, which integrates visible light and infrared cameras, can identify and sort various materials, achieving over 90% accuracy in recovering specific items, including aluminum. Horowitz pointed out that a significant amount of aluminum—especially in urban areas with effective recycling programs—often ends up in regular garbage rather than being processed. The rise of facilities like Sortera and Amp is crucial for the metals industry, as they promise to increase the domestic supply of aluminum, a vital resource for various sectors of the economy. "These projects are among the largest contributors to domestically sourced aluminum entering the market each year," he noted.