Soaring scrap aluminium exports threaten UK defence, auto supply chains, industry group says

LONDON, June 16 (Reuters) - Soaring exports of aluminium scrap risk leaving Britain short of a critical material needed for defence, clean energy, digital technologies and the auto industry, manufacturing trade body Make UK said.

It warned the UK could face a crisis if more scrap continues to flow overseas, with industry moving abroad in search of better access to scrap markets. This risks jobs, investment and supply chain resilience.

Make UK said domestic industry could need as much as 6 million metric tons of available scrap for recycling by 2035 to help meet projected aluminium demand of 8 million tonnes under the government’s Critical Minerals Strategy and Modern Industrial Strategy.

“The size of the prize is significant, with UK aluminium (scrap) collection and sorting alone needing to grow by 25% each year,” said Daniel Paterson, director of sector specialisms at Make UK.

“But this important opportunity will be lost if the UK continues to export a critical material that our future economic growth sectors and national security and resilience depend on.”

Data from information provider Trade Data Monitor showed UK exports of aluminium waste and scrap at 624,314 metric tons last year, a 43% jump from 2016. Over the same period UK aluminium scrap shipments to India increased 94% to 198,779 tons.

UK aluminium scrap exports to the United States at 23,560 tons last year showed a jump of 989% from 2024.

"UK exports to the U.S. increased dramatically after Section 232 tariffs excluded aluminium scrap from their scope," Make UK said in a release.

U.S. President Donald Trump imposed 50% tariffs on aluminium imports in June last year.

Make UK called for investment in domestic sorting and pre-processing capacity, stronger collection and enforcement standards and targeted measures to retain certain aluminium alloys in the UK. It also urged the government to engage urgently with the EU to secure equivalent treatment if Brussels introduces aluminium scrap export restrictions.

The European Commission is working on measures to curb aluminium scrap leaving Europe after warning that scrap exports risk leaving EU metals industries short of material needed for recycling and decarbonisation.

(Reporting by Pratima Desai; editing by Nia Williams)