Sortera expands recycling capacity as aluminum prices climb

Sortera, a metals recycling startup, has opened a second facility in Tennessee, doubling its processing capacity to 240 million pounds. Between 90% to 100% of the material processed at the new site is aluminum. The expansion comes as the industry responds to a 20% increase in aluminum prices, driven in part by geopolitical tensions. Around 10% of the world’s aluminum is produced in the Gulf region, where a conflict that began in late February has disrupted commodity markets. Even before these supply pressures, the U.S. government had designated aluminum as a critical mineral, highlighting the country’s reliance on imports and domestic recycling to meet demand.

To capture more of this material, startups are deploying AI-powered sorting systems. Sortera, which is based in Indiana, focuses on sorting aluminum scrap using a range of different sensors—including lasers, cameras, and X-ray fluorescence—to identify specific grades of the metal. Meanwhile, Amp, a waste sorting startup, uses an AI-powered sorting system equipped with visible light and infrared cameras to identify and separate recyclable materials from general waste streams. Amp asserts that its system is over 90% accurate at recovering specific materials.

The economic incentive for high-accuracy sorting is substantial. “Aluminum might be 1% of the garbage stream, but it often trades for over $1,000 per ton,” said Matanya Horowitz, CTO at waste sorting startup Amp. Horowitz noted that because of this high value, aluminum actually ends up being one of the most significant individual commodities.

Despite its value, much of the metal is currently lost. According to the U.S. Environmental Protection Agency (EPA), only about 20% of aluminum is recovered in the U.S. Horowitz pointed out that even in metro areas with successful recycling programs, half of the aluminum ends up directly in the garbage without ever entering the recycling system. Last year, the U.S. consumed 4.3 million metric tons of aluminum. By recovering more high-grade material, AI-driven facilities are positioning themselves to bolster domestic supplies. Horowitz noted that these types of projects represent some of the largest sources of domestically produced aluminum coming online in a given year.

Why it matters

Aluminum is a critical mineral with rising prices; AI-driven sorting is transforming waste streams into a significant source of domestic supply, addressing the gap between consumption and recovery.