A new survey of automakers and Tier 1 suppliers conducted by Ducker Carlisle concludes that as electric vehicles continue to enter the mass market, aluminum demand will grow through the end of the decade. The report, “2023 North American Light Vehicle Aluminum Content and Outlook,” released today by the Aluminum Association indicates that demand for more sustainable transportation will help drive an increase in market share for aluminum content by nearly 100 net pounds per vehicle (PPV) from 2020 to 2030.
“Consumers want cars and trucks that are more sustainable, more electrified and filled with more technology, and automakers are responding with a host of innovations, all enabled by high-strength, low weight and infinitely recyclable aluminum,” said Mike Keown, chair of the Aluminum Transportation Group and CEO of Commonwealth Rolled Products. “The aluminum industry is committed to ensuring consumers experience the performance and environmental benefits of aluminum as more and more vehicles are designed with the metal in the years ahead. Greater collaboration with automakers will bring to life this vision, set forth by the aluminum industry in its 10-year roadmap. And as mega-casting and closed-loop recycling continue to advance, aluminum producers remain vital partners in helping automakers achieve aggressive carbon neutral targets.”
The report, which reflects data collected during an 8-month period through interviews with leading automakers, Tier 1 suppliers and aluminum producer companies, identifies five key market themes:
“Electrification positively affects aluminum content and compensates for the transition away from powertrain and transmission components, which are primarily aluminum,” said Abey Abraham, principal of automotive and materials at Ducker Carlisle. “As electrified powertrains create significant growth opportunities for aluminum, more stringent fuel economy standards also continue to promote mass reduction in ICE vehicles.”
Additional findings from the triannual “North American Light Vehicle Aluminum Content and Outlook” include:
A thriving automotive aluminum sector remains vital to the nation’s manufacturing base and a healthy U.S. economy. Last year, the U.S. aluminum industry announced more investment in domestic manufacturing than in the past several decades combined to support growing demand for the metal. Companies announced billions to build new aluminum rolling and recycling capacity, including greenfield plants slated to come online in the coming years, to support automotive and other markets. It has been more than 40 years since a similar, new U.S.-based mill was built.