The US must develop a national strategy to prioritise, produce and defend critical materials like aluminium in order to strengthen the domestic supply base, according to The Aluminum Association.
The Association, which represents companies that make around 70% of the aluminium and aluminium products shipped in North America, outlined its call in a policy brief detailing strategic priorities for the incoming Trump administration.
According to the International Aluminium Institute, demand for aluminium is expected to grow 80% globally through to 2050, and the US is uniquely positioned to capture a “significant portion” of this demand as a global leader in aluminium production, recycling and innovation.
“Working together, we can grow American jobs, protect domestic production from non-market economy countries and ensure access to critical materials that promote investment in domestic capacity,” the Aluminium Association said in its brief.
According to the industry body, the US aluminium industry has invested more than USD10 billion in mid- and downstream processing and recycling capacity over the past decade, while US primary aluminium production continues to decline.
It added that the biggest threat to US aluminium manufacturing is unfair trade practices by China.
“Domestic aluminium manufacturers need strong trade remedies and enforcement to compete with government-subsidised production that is deliberately oversupplying the marketplace,” the Association said.
The policy brief proposes the following priorities:
Pursue strong, targeted trade enforcement: Enforce robust, targeted trade policies to counteract government-subsidised production and ensure fair competition globally.
Collect and keep more aluminium for America: Improve collection infrastructure and support policies, including recycling refund and Extended Producer Responsibility (EPR) programmes, to boost domestic recycling and secure an essential source of metal supply.
Recognise aluminium as critical for economic and national security: Create a national strategy to secure aluminium supply chains, recognising the material’s vital role in critical sectors of the US economy.
Invest in America by investing in aluminium: Augment the industry’s more than USD10 billion in private investment over the past decade with smart infrastructure, tax, and energy policies. Support pro-growth tax policy to strengthen aluminium manufacturing and encourage investment — including the continuation of President Trump’s Tax Cuts and Jobs Act.
“American aluminium is already growing and expanding with robust demand and investment. But we need decisive policy action to unlock its full potential. By working with the new administration and Congress, we can ensure that this growth continues to support hundreds of thousands of American jobs while driving innovation in US manufacturing,” said Charles Johnson, chief executive of the Aluminum Association.
“Policymakers across the spectrum recognise the vital importance that aluminium plays in a strong national economy and defense. Working together, America can win the future of aluminium production and recycling.”