With aluminum prices up 20%, recycling startups bet on AI to cash in | TechCrunch
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With aluminum prices up 20%, recycling startups bet on AI to cash in | TechCrunch
Aluminum production concentrated in the Gulf region has been affected by conflict, pushing aluminum prices to levels not seen in decades. The U.S. has identified aluminum as a critical mineral, relies heavily on imports, and uses recycled aluminum for a portion of supply. Recycling startups benefit as aluminum can be valuable even when present in small amounts in waste. The EPA estimates only about 20% of aluminum is recovered, motivating efforts to improve recovery rates. Waste sorting companies use AI and advanced sensors to identify aluminum scrap grades or to separate aluminum from mixed waste streams. Higher accuracy in sorting enables better yields and greater profit per pound.
"Around 10% of the world's aluminum is made in the Gulf region, so prices of the metal have reached levels not seen in the last several decades."
"Aluminum might be 1% of the garbage stream, but it often trades for over $1,000 per ton. It actually ends up being one of the most significant individual commodities."
"Aluminum is one of the most recycled materials in the U.S., but even then, only about 20% is recovered, according to the EPA. Waste sorting startups have been pitching AI as a way to improve those figures."
"It uses a range of different sensors, including lasers, cameras and X-ray fluorescence, to feed AI algorithms that classify each potato chip-sized piece of scrap to identify the specific grade of aluminum. By separating the grades at higher accuracy, Sortera can make more profit per pound."
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