Aluminum rolling and recycling company Novelis announced today plans to invest $365 million to build an automotive recycling center, which is expected to reduce the company’s carbon emissions by more than one million tons each year. The new facility will be built adjacent to Novelis’ existing automotive finishing plant in Guthrie, Kentucky.

The facility will enable the company to expand its closed-loop recycling program with automotive customers, taking back the aluminum remaining after automotive parts are stamped from sheets, and remaking it into the same product for new vehicles. Additionally, the new facility will be able to process aluminum from vehicles at the end of lifecycle.

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According to Novelis, the use of recycled aluminum helps avoid 95% of the carbon emissions associated with production, as it only requires 5% of the energy used to make primary aluminum.

Novelis President and CEO Steve Fisher said:

“Novelis aims to be the world’s leading provider of low-carbon, sustainable aluminum solutions that advance our business, industry and society toward the benefits of a circular economy. Through this investment, we will continue to increase the amount of recycled content in our products, reducing our CO2 emissions and moving us closer to carbon neutrality.”

Groundbreaking for the new facility is scheduled for early 2022, with commissioning expected in 2024. Anticipated annual capacity for the plant is 240 kt of sheet ingot.

Tom Boney, Executive Vice President and President of Novelis North America, said:

“We are excited about this new investment in Kentucky, which will help Novelis achieve its sustainability goals, as well as support the carbon-reduction targets of our automotive customers. The Commonwealth of Kentucky has been a great business partner for many years and has a strong, highly skilled workforce to meet the growing need for high-strength, low-carbon aluminum. We look forward to deepening our relationships with community leaders to ensure our facility has a lasting, beneficial impact in the region.”