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Aluminum Association Urges Congress to Pass Permitting Reform
The Aluminum Association is urging Congress to advance bipartisan permitting reform, arguing that faster and more predictable approvals are needed to expand U.S. primary aluminum production, recycling capacity and the energy infrastructure required to support future demand.
Key Points
- Permitting: The Aluminum Association is backing the Bipartisan American Affordability and Jobs Act of 2026.
- Domestic supply: The U.S. currently produces less than 20% of the primary aluminum it consumes.
- Future demand: Global aluminum consumption is projected to rise about 80% by 2050.
- New capacity: The association estimates five to six new greenfield smelters could be needed to close the U.S. primary aluminum supply gap.
- Recycling: The group says expanded recycled-aluminum capacity must grow alongside primary production and energy infrastructure.
SEATTLE (Scrap Monster): The Aluminum Association is calling on Congress to advance bipartisan permitting legislation that it says could help unlock investment in U.S. primary aluminum production, recycling capacity and supporting energy infrastructure.
In an October 21 statement, association President and CEO Charles Johnson backed the Bipartisan American Affordability and Jobs Act of 2026, legislation aimed at modernizing federal permitting and environmental-review processes for energy and infrastructure projects.
The bill, S.5653, was introduced September 30 by Sen. Shelley Moore Capito, with Sens. Mike Lee, Sheldon Whitehouse and Martin Heinrich as cosponsors.
Aluminum Industry Seeks Greater Investment Certainty
The Aluminum Association argues that lengthy and uncertain permitting processes make it harder for manufacturers to commit capital to large industrial projects.
Johnson said more predictable approvals could encourage investment across the aluminum value chain, including primary smelting, recycling facilities and the power infrastructure needed to support energy-intensive production.
The association is urging lawmakers to enact permitting reform during the current Congress.
ScrapMonster Edge: Recycling Is Part of the Supply Strategy
The association is not positioning new primary smelting as a substitute for recycling.
Its broader strategy calls for both: additional domestic primary aluminum capacity alongside stronger scrap recovery, recycling investment and downstream manufacturing.
Recycled aluminum already accounts for roughly 85% of U.S. aluminum production, according to the association, making secondary metal a central part of future domestic supply.
For scrap processors, that means permitting reform could matter beyond smelters. Faster development of recycling plants, remelt capacity and energy infrastructure could also expand domestic demand for recovered aluminum.
Global Aluminum Demand Could Rise 80% by 2050
The policy push comes as the aluminum industry prepares for substantial long-term demand growth.
The Aluminum Association says global aluminum demand could increase approximately 80% by 2050, supported by transportation, packaging, construction, electrical infrastructure, defense and advanced manufacturing.
That creates a supply challenge for the United States, which currently produces less than 20% of the primary aluminum it consumes each year.
The association estimates that replacing that gap entirely with new domestic primary production could require approximately five to six greenfield aluminum smelters.
Energy Infrastructure Remains a Major Constraint
Building new primary smelting capacity requires more than permits.
Aluminum smelters consume large amounts of electricity, making access to reliable and competitively priced power one of the biggest constraints on domestic expansion.
The permitting bill is therefore relevant to the aluminum industry not only because it could affect new manufacturing projects, but also because it targets energy and transmission infrastructure needed to support them.
The legislation would establish new rules intended to accelerate federal reviews, provide greater certainty for projects that have already received permits and address transmission needs associated with rising electricity demand.
“America Needs Aluminum” Campaign Targets Washington
The association's latest permitting push builds on its “America Needs Aluminum” campaign, officially launched October 1.
The campaign calls for an “all-of-the-above” aluminum strategy focused on expanding domestic primary production, increasing recycling, strengthening manufacturing and improving access to affordable energy.
It also seeks stronger policies aimed at maintaining reliable domestic material supply as demand grows.
The Aluminum Association says the U.S. aluminum industry has invested more than $11 billion in domestic manufacturing during the past decade, with much of that spending directed toward midstream, downstream and recycling operations.
Permitting Bill Has Bipartisan Senate Backing
The Bipartisan American Affordability and Jobs Act has support from senior lawmakers on both sides of the Senate's energy and environmental committees.
The legislation is designed to shorten the time required to review and permit energy and infrastructure developments while retaining environmental and historic-preservation requirements.
Supporters argue that the changes could speed investment in power generation, transmission, manufacturing and critical-mineral projects.
The bill remains under consideration in the Senate and has not yet become law.
ScrapMonster Market Read
The Aluminum Association's permitting push highlights how closely U.S. aluminum policy is now tied to energy, recycling and supply security.
Tariffs may improve the economics of domestic production, but expanding actual capacity still requires electricity, permits, construction and long-term capital commitments.
For recyclers, the important point is that secondary aluminum remains part of the same supply strategy. If U.S. manufacturing and remelt capacity expand, domestic competition for quality aluminum scrap could become increasingly important alongside investment in new primary metal production.
