Aluminum prices have surged by 20% amid rising tensions in the Gulf region, particularly affecting the U.S. market where a significant portion of aluminum is imported. This has created an opportunity for recycling startups using AI technology.
AI Innovations in Recycling
Matanya Horowitz, CTO at waste sorting startup Amp, highlighted the importance of aluminum, stating, "Aluminum might be 1% of the garbage stream, but it often trades for over $1,000 per ton." The U.S. Environmental Protection Agency reports that only about 20% of aluminum is recovered, despite it being one of the most recycled materials.
Sortera's Expansion
Sortera, a metals recycling startup based in Indiana, has opened a new facility in Tennessee, effectively doubling its processing capacity to 240 million pounds, predominantly aluminum. The facility uses advanced sensors like lasers and X-ray fluorescence to enhance AI algorithms for sorting aluminum scrap by grade, increasing profitability per pound.
Amp's High-Accuracy System
Amp employs a different method, utilizing AI-powered systems to sort through recycling and waste streams. With sensors such as visible light and infrared cameras, the system achieves over 90% accuracy in recovering specific materials, including aluminum, as confirmed by Horowitz. Robotic arms and air puffers then sort the materials into separate bins.
Horowitz pointed out that "half of the aluminum in a metro area — in places with successful recycling programs — are just in the garbage, not even touching the recycling system." Facilities like those operated by Sortera and Amp are crucial in bolstering domestic aluminum supplies.
Increasing Domestic Production
These recycling initiatives are among the largest sources of domestically produced aluminum coming online each year, alleviating some of the reliance on imports and contributing to the industry's stability amid geopolitical tensions.
Source: https://techcrunch.com/2026/05/21/with-aluminum-prices-up-20-recycling-startups-bet-on-ai-to-cash-in/
