Aluminium energy transition outlook 2025

Aluminium is poised to play a pivotal role in achieving energy transition goals. The rapid advancement of clean technologies—solar, wind, energy storage, and electric vehicles—along with the necessary infrastructure, will drive future aluminium demand. This demand could surge even more if clean energy deployment accelerates under the Net Zero and Pledges scenario compared to base case (ETO). However, aluminium is both a solution and a challenge in the quest for a decarbonised world. The high carbon intensity of primary aluminium production poses a significant hurdle. Transitioning to a low-carbon primary smelting industry will be complex and challenging. Striking a balance between increased aluminium usage and reducing its carbon footprint is essential. Scrap and secondary aluminium will be crucial to the industry's decarbonisation efforts, though this shift will entail costs for both producers and consumers.