US scrap industry ‘hungry’ for cars

‘Automotive material is in high demand in America,’ says Kristen Hildreth, vice president of public affairs at ReMA. ‘Cars are the most recycled product across the United States,’ she told delegates at the annual IARC in Antwerp.

The success of America’s car recycling industry is down to a large professional network of 9 000 dismantlers, including 297 shredding facilities. Twenty-two facilities are under construction.

‘It’s been getting difficult in certain states to get a permit for recycling operations owing to new legal requirements and environmental controls,’ Hildreth observes. It doesn’t help that sites are designed to deal with traditional vehicles with internal combustion engines and less composites and electronics.’

The US generates around 12 million end-of-life vehicles per year. A total of 95% of all cars enter the recycling ecosystem, with at least 80% of total material being recycled. The list of authorised treatment facilities includes over a thousand companies.

Greener steel

Steel accounts for around 50% of a modern car. America processes some 5.4 million tonnes of aluminium per year, as well as 5.5 million tonnes of electronics, 2.3 million tonnes of plastics, 1.8 million tonnes of copper, one million tonnes of lead, 300 000 tonnes of zinc and 200 000 tonnes of lead. Other materials (rubber, tyres, textiles and glass) total seven million tonnes.

‘Our car recycling industry recycles upwards of 14 million tonnes of steel annually,’ Hildreth adds, pointing out an impressive 37% of steel is supplied to smelters by car recyclers. Over 70% of the steel is produced at electric arc furnaces (EAFs). Some mills are scheduled for upgrades, with recyclers talking about building new EAFs in their place.

The US green steel market is currently around 25% of global production. Even in the case of EAFs, the main source of fuel remains coal and natural gas. ‘There is a movement towards net zero steel,’ Hildreth explains.

’Some recyclers are looking to source zero carbon electricity, while the Inflation Reduction Act has put hydrogen operations at cost parity to traditional steelmaking. With Trump in the White House, it’s unclear whether or not that benefit will remain intact.’

Making ripples

‘America has a reputation for being the largest ferrous scrap exporter in the world,’ Hildreth notes. ‘Just last year, we exported US$ 26.7 billion (EUR 24.3 billion) worth of recycled materials to manufacturers worldwide. I wonder how this will shape up in the near future, in the wake of the trade barriers introduced in recent weeks.’

The US exports around one million used cars annually. The majority are sent to the United Arab Emirates, Georgia, Mexico and Lithuania. ‘Mexico is an especially important market for our industry while exports to UAE have been increasing in recent years.’

The total tonnage of all commodities being exported annually, Hildreth reports, was 37.6 million tonnes in 2023. Exports cover around 27% of the entire waste stream. In 2024, exports and imports of recycled aluminium were both up by 2% and 3%, respectively. Meanwhile, recycled steel exports and imports were down by 4% and 10% last year.

‘Sharp drop’

Hildreth adds that electric cars are facing an uncertain future in the US. ‘E-car adoption rates are going up… for now. Following the election, people fear that EV tax credits will go away. If this lack of support persists, it will mean fewer electric cars on the road and fewer EVs at the recycling yard ten to 15 years from now.’

In the worst scenario, market analysts predict a sharp 40% drop in EV sales by 2030. This would hurt e-car recyclers who’ve invested heavily in expanding operations to accomodate a growing fleet. ‘At the same time, as we enter a new chapter of geopolitical unstability, cutting-edge battery recycling technology is needed more than ever. ReMA hopes recycles will still invest in tomorrow.’

Added to that, the recent US trade tariffs have led to counter tariffs from China, Mexico and Canada. ‘The latter have been delayed twice. But who knows for how long?,’ Hildreth argues. ‘These measures will eventually impact our economy and our recycling industry. Besides, organistations like ours are no longer getting a heads up about anything. We basically get the announcement in our inbox with the rest of the world.’

This means ReMA’s team has to stay dilligently on top of the news. ‘Efforts to restrict the trade of recycled materials pose a real threat to the existance and viability of our industry.’

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