Make UK said the aluminium recycling sector must grow 25% every year to support UK industrial demand.

Aluminium scrap is an essential material for products supplying defence, clean energy, digital technologies, and the automotive sector.

However, export scrap leakage has increased by 84% in the past decade, undermining domestic supply and national security.

Daniel Paterson, Director of Sector Specialisms at Make UK, said: “The size of the prize is significant, with UK aluminium collection and sorting alone needing to grow by 25% each year.

“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.”

In 2024-25, UK exports to the US increased after Section 232 tariffs excluded aluminium scrap from their scope, rising from 2,000 to 24,000 tonnes, a 990% leap in export volume.

Additionally, in 2024-25, the UK exported approximately 200,000 tonnes to India, with 173,500 tonnes also going to Hong Kong and China combined.

Make UK estimates that domestic industry could require as much as 6 million tonnes (Mt) of scrap available for recycling to meet a total 8Mt aluminium demand by 2035, as set out in the Critical Minerals Strategy and Modern Industrial Strategy.

But, if scrap aluminium exports continue to increase, the UK risks a production crisis, with industry moving abroad for better access to domestic and EU scrap markets, offshoring economic value and weakening security, productivity and jobs.

Paterson said: “Right now is the time to invest in the future of aluminium manufacturing, improve collection standards for scrap materials, retain the alloys we need within a domestic circular economy.

“Together, we can grow the businesses and jobs linked to aluminium collection, sorting, and manufacturing.

“The UK Government now needs to work with business to move quickly and build domestic processing capability to stem the tide of exports, or risk losing growth, ongoing investment, jobs, and supply chain resilience to competitors overseas.”