Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

A closed loop recycling system implemented by aluminum recycler Novelis for Volvo is likely reducing the carbon (CO2) footprint of the carmaker. 


According to Novelis, Volvo’s production scrap is sent back to the aluminum rolling and recycling company, which reduces the amount of primary aluminum used by the automaker as well as its C02 footprint of delivered aluminum sheets by 78pc. The system also ensures that Volvo’s production scrap remains in the value-chain and is transformed in the same products infinitely.


Novelis has already implemented this system at its plant to significantly augment its aluminum recycling operations while mitigating its CO2 footprint from 33pc in FY2010 to 61pc in FY2019. Michael Hahne, Novelis Europe’s vice president of automotive, said that by creating the world’s biggest automotive closed-loop recycling system for Volvo, the company has effectively curtailed its dependence on primary aluminum and given way to a more sustainable and efficient business model.


The closed-loop system, launched a few years ago, has been a success for Novelis, which recycles up to 400,000mt of aluminum scrap per annum at its facility in Germany. 

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