Aluminum rolling and recycling company Novelis announced today plans to invest $2.5 billion to build a new low carbon recycling and rolling plant in Alabama. The facility will be the first fully integrated aluminum mill built in the U.S. in 40 years.

Novelis said that the decision to build a fully integrated greenfield facility was backed by strong demand in North America for sustainable packaging solutions from can makers and beverage companies, driven by consumer demand.

Steve Fisher, President and CEO of Novelis Inc, said:

“Through this investment, we are making a demonstrative commitment to continue to grow alongside our customers and meet their needs for low-carbon, highly sustainable aluminum solutions. In addition, we are well-positioned to efficiently expand capacity at this facility in the future – above the 600kt announced today – to capture ongoing strong demand.”

More than half of the capacity of the new 600 kiloton facility will be used to serve growing demand for aluminum beverage can sheet in North America. The facility will also serve the automotive market, which is also seeing growing demand for aluminum as automakers seek to meet their own sustainability goals.

The plant will aim to be net carbon neutral for Scopes 1 and 2, will be powered mainly by renewable energy, use recycled water and be a zero-waste facility. Railroad transportation will also be used, reducing logistics-related carbon emissions.

Novelis anticipates that it will have the capability to recycle 90 billion cans globally with the addition of a new recycling center, up from its current capacity of 74 billion cans.

Kumar Mangalam Birla, Chairman of the Aditya Birla Group and the Novelis Board of Directors, said:

“This investment marks the start of another transformational growth phase for Novelis. We continue to invest in each of the markets Novelis serves – from beverage can to automotive, aerospace and specialties – and in all geographies. Novelis has a track record of success in delivering customers the low-carbon, sustainable aluminum solutions they seek, and we will continue that storied history with this investment and others to come.”

Site work on the new facility is now under way, with commissioning expected in mid-2025.