AI-powered recycling startups capitalize on surging aluminum prices

Aluminum prices have surged 20% amid geopolitical tensions, with 10% of global production in the Gulf region affected by the US-Iran conflict. This has created a boom for recycling startups using AI to recover more aluminum from waste. Sortera, an Indiana-based metals recycler, opened a second facility in Tennessee, doubling its processing capacity to 240 million pounds, of which 90-100% is aluminum—a significant fraction of the 4.3 million metric tons the US used last year. The company uses lasers, cameras, and X-ray fluorescence to feed AI algorithms that classify scrap by grade, boosting profitability. Amp, another startup, employs AI-powered sorting with visible light and infrared cameras to identify materials like aluminum and plastics, achieving over 90% recovery accuracy. Matanya Horowitz, Amp's CTO, noted that aluminum, though only 1% of the garbage stream, often trades for over $1,000 per ton, making it a valuable commodity. The EPA reports only about 20% of aluminum is recovered in the US, leaving vast potential for AI-driven recycling to bolster domestic supply of this critical mineral.