Rising gas prices have dominated headlines since the Trump administration initiated its conflict with Iran in late February, but fuel isn't the only commodity feeling the heat. Approximately 10% of the world's aluminum is produced in the Gulf region, driving prices of the metal to levels not seen in decades. Even before the Iran war, the U.S. government had designated aluminum as a critical mineral. A significant portion of American aluminum demand is satisfied through imports, and much of what the country does produce comes from recycling. For recycling startups, this is an opportune moment to thrive. "It actually ends up being one of the most significant individual commodities."

Aluminum ranks among the most recycled materials in the U.S., yet according to the EPA, only about 20% is recovered. Waste sorting startups have been promoting AI as a solution to boost these numbers. A new facility doubles one company's processing capacity to 240 million pounds, with 90% to 100% of that being aluminum—a substantial chunk of the 4.3 million metric tons the U.S. consumed last year. This Indiana-based startup specializes in sorting aluminum scrap. It employs a variety of sensors, including lasers, cameras, and X-ray fluorescence, to feed AI algorithms that classify each potato chip-sized piece of scrap and identify its specific aluminum grade. By separating grades with greater precision, Sortera can increase its profit per pound.

Amp has adopted a different strategy, using an AI-powered sorting system to process both recycling and general waste streams. This system relies on sensors, such as visible light and infrared cameras, to identify everything from wrappers to foil, distinguishing plastics from aluminum. As waste flows through the system on conveyor belts, robotic arms and air puffs either pluck or blow materials into separate bins. Amp claims its system achieves over 90% accuracy in recovering specific materials, including aluminum. "Half of the aluminum in a metro area—in places with successful recycling programs—are just in the garbage, not even touching the recycling system," Horowitz noted.

For the metals industry, recycling facilities like those being developed by Sortera and Amp could strengthen supplies of a critical mineral used throughout the economy. "These types of projects are some of the biggest sources of domestically produced aluminum that are coming online in a given year," he added.