This startup plans to recycle aluminum from cars and keep it all in the U.S.

  • by:
  • Source: CNBC
  • 01/30/2025
text by Sigmund is licensed under unsplash.com

The drive to recycle just about everything is gaining ground, but the process — separating out all the different materials and item types — can be both confusing and tedious for consumers. For industrial recycling, it can be even more cumbersome.

Scrap metal, in particular, needs to be sorted in order to reduce pieces to their pure type. Traditionally the majority of scrap is shipped overseas and hand-sorted or melted down into lower-quality materials with limited uses. If it can be sorted in a better way, its value can be maintained, reducing both energy and emissions at the same time.

That’s where Sortera, a startup based in Indiana, hopes to come in. It’s one of several companies aiming to revamp the entire process.

In Markle, Indiana, for instance, Sortera is helping sort thousands of tons of shredded aluminum into different alloys, or types and grades of the metal.

“Things that are end-of-life — like our cars, washing machines and so forth — what happens is it gets shredded, and then all that mixed material now is no longer valuable, [and] nobody can use it,” Michael Siemer, CEO of Sortera, told CNBC. “We sort it so that all those pieces then can be reused.”

Some outlets for that reuse could be domestic industries like automotive, construction and aerospace.

There are roughly 300 metal shredders in North America, creating about 11 billion pounds of mixed aluminum, according to Sortera. The company buys metal from scrap yards, sorts it using a proprietary technology and then sells it back to companies like Novellis, which can then melt it using just 5% of the energy needed to make new aluminum.

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