Novelis Inc. plans to invest $2.5 billion to build a new low-carbon aluminum rolling and recycling plant in Bay Minette, Alabama — making it the first integrated rolling facility to be built in the U.S. in 40 years. The highly advanced facility will have an initial capacity to produce 600,000 tonnes of finished aluminum goods per year. More than half of this capacity will be used to serve growing demand for aluminum beverage can sheet in North America, which is driven by consumer preference for more sustainable packaging.
“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,” said Steve Fisher, president and CEO of Novelis Inc. “In addition, we are well-positioned to efficiently expand capacity at this facility in the future — above the 600,000 tonnes announced today — to capture ongoing strong demand. Our readiness to invest to serve growing markets is a perfect example of how we are delivering on our company purpose of shaping a sustainable world together.”
According to Novelis, the integrated facility will be the most sophisticated and sustainable of its kind. The plant will make significant use of advanced automation and digital technologies, including artificial intelligence, augmented reality, and robotics. It will also aim to be net carbon neutral for Scope 1 and 2, be powered primarily by renewable energy, use recycled water and be a zero-waste facility. Moreover, the plant will rely on railroad transportation, which can reduce logistics-related carbon emissions by up to 70% compared to road transport. The facility is expected to create up to 1,000 high-paying, advanced careers in modern manufacturing.
Novelis’ decision to build the fully integrated, greenfield recycling and rolling plant is backed by strong North American demand for flat-rolled, low-carbon aluminum from can makers and beverage companies. Aluminum beverage cans, bottles and cups are the models of sustainable packaging and the circular economy. In fact, with an average “can-to-can” lifecycle of just a couple of months, a can that is recycled today can be back on store shelves in as little as 60 days.
With the addition of a new recycling center for beverage cans, Novelis will soon be able to recycle 90 billion cans globally, up from the 74 billion used beverage cans the company currently recycles. To support this, Novelis has been working to develop circular economies for aluminum through state and federal public policies, as well as through partnerships with customers and other stakeholders on new approaches that encourage and incentivize U.S. consumers to recycle more often.
“As the world’s leading supplier of infinitely recyclable aluminum beverage packaging, Ball is committed to creating a circular economy within the aluminum industry and decarbonizing the value chain is fundamental to this work,” said Ron Lewis, Ball Corporation’s chief operating officer, global beverage packaging. “Novelis’ new recycling and rolling plant will not only add much needed domestic production of sustainable aluminum here in North America but will do so while decreasing the carbon footprint of the products we create.”
In addition to the beverage can market, the facility will also serve the automotive market, where aluminum is the fastest growing material as automakers make plans to achieve their sustainability goals.
“This investment marks the start of another transformational growth phase for Novelis,” said Kumar Mangalam Birla, chairman of the Aditya Birla Group and the Novelis board of directors. “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 is now under way, and the company expects to begin commissioning in mid-2025.