Aluminum is moving from a supporting role to center stage in the global green transition. The metal is light and strong, and also endlessly recyclable. This makes it essential for electric vehicles (EVs), solar panels, power lines, and low-carbon buildings.

Global demand for aluminum is rising fast as countries expand renewable power and electric transport. The International Aluminium Institute (IAI) expects aluminum demand to rise by 40% by 2030. This growth is fueled by clean-tech uses.

But as the market expands, so does scrutiny on emissions. Aluminum smelting is one of the most energy-intensive industrial processes in the world. Reducing its carbon footprint is now a top goal for both industry and governments.

Aluminum Prices Hit 3-Year High Amid Tight Supply

On October 10, 2025, aluminum prices surged to their highest level in three years, topping around $2,800 per tonne. The rally shows rising supply worries and increasing demand from clean energy sectors. This includes electric vehicles (EVs), renewable power, and construction.

Analysts attribute the spike to several factors. China’s power shortages have limited smelting output. Also, new environmental rules are tightening production limits on coal-powered plants. In addition, unrest in Guinea, which supplies over 45% of China’s bauxite imports, has raised fears of disruptions in the global supply chain.

Meanwhile, inventories tracked by the London Metal Exchange fell to their lowest point since 2021, signaling a tightening market.

“Supply can’t keep up with the clean-energy boom,” said analysts from BloombergNEF. They pointed out that aluminum’s use in solar, EVs, and transmission lines is growing faster than producers can adapt.

The recent price rise shows that investors prefer low-carbon aluminum. This type of aluminum now has a significant premium. Demand for verified low-emission materials is outpacing supply. This is the case for automakers, construction firms, and renewable developers in Europe and North America.

Experts think that prices over $2,500 per tonne could boost investments in recycling and renewable-powered smelters. This is especially true in places like Canada, Norway, and the Middle East. However, the rally also underscores a broader challenge: balancing the green transition with resource security.

Why Aluminum Is the Unsung Hero of Clean Energy

Aluminum saves weight — and that means energy. Lighter cars and trucks travel farther on the same battery charge. According to the Aluminum Association, modern EVs use 30–40% more aluminum than traditional gas vehicles.

It’s not just cars. Each 1-MW solar farm uses roughly 40 tons of aluminum for panel frames, mounts, and wiring. Power grids also rely on aluminum for transformers and long-distance transmission lines.

The metal’s high recyclability adds major sustainability value. Recycled aluminum uses only 5% of the energy required for primary production. Yet recycling accounts for only about 36% of global aluminum output today, leaving huge room for expansion.

The low-carbon aluminum market was 19.3 million tons in 2024, per IMARC estimates. It can grow to 27.7 million tons by 2033, with an annual growth rate of 3.7%. That growth mirrors global renewable investment trends.

China’s Dominance and the Global Supply Imbalance

China dominates the aluminum industry. It produces over 40 million tons of primary aluminum annually — nearly 60% of global supply. It also tops in refining and processing, as well as in demand for raw materials like bauxite.

Exports of bauxite from Guinea to China jumped 35% in 2024, making Guinea the world’s top bauxite exporter. This raw material feeds China’s vast smelting network.

Worldwide, primary aluminum production has topped 70 million tons in recent years. But the carbon footprint varies greatly by location.

Smelters powered by coal — common in parts of China — emit far more CO₂ than those powered by renewables. Producers in Norway, Iceland, and Canada use hydropower. They create aluminum with emissions below 4 kg CO₂ per kg aluminum. This is much lower than the global average of 16.7 kg CO₂ per kg (IAI, Hydro).

This huge gap shows why energy source matters as much as output in the global supply chain.

• SEE MORE: Rio Tinto and Hydro Invest $45 Million to Cut Aluminum Emissions

The Emissions Problem — and Low-Carbon Solutions

Traditional aluminum production is energy-hungry. The International Energy Agency (IEA) estimates that aluminum accounts for around 2% of global CO₂ emissions from materials production.

Producers are now turning to renewable power and recycled inputs to cut this footprint. Norsk Hydro, for example, produces low-carbon aluminum emitting only 3 kg CO₂/kg, among the world’s cleanest.

If all smelters switched to renewable power, global aluminum emissions could fall by 400 million tonnes of CO₂ each year. That’s like the yearly emissions from 100 coal plants.

Recycling is another big win. Recycling rates in Europe could double by 2030, potentially saving 39 million tonnes of CO₂ per year by 2050. Globally, if all used aluminum were recycled, the industry’s total energy demand could fall by 60%, says MARC Group.

Pricing, Premiums, and the Push for Low-Carbon Metal

Aluminum remains a major commodity. The global aluminum market was valued at roughly $190 billion in 2024, with steady growth projected through 2030.

The IAI forecasted the following for aluminum demand growth by 2030:

• By Region:
  Around 93% of global aluminum demand growth between 2020 and 2030 will come from Asia (especially China), Europe, and North America, reflecting industrial expansion, renewable power deployment, and strong EV manufacturing in these regions.

• By Sector:
  Aluminum demand is set to grow most in transportation (+11.8 Mt), followed by electrical (+5.2 Mt), construction (+4.6 Mt), and packaging (+3.3 Mt) — with transport leading due to electric mobility and the electrical sector driven largely by solar and renewable infrastructure.

• By EV Demand:
  Electric vehicles will account for roughly 63% of new aluminum demand in transport, adding about 7.4 million tonnes by 2030; EVs use 60–80 kg more aluminum per vehicle than traditional models, with China, Europe, and North America driving about 93% of this growth.

Low-carbon aluminum commands a premium. Market data shows that buyers pay $20 to $150 per tonne more for certified low-carbon products, depending on the region and energy source.

Smelters that use renewable power gain a cost edge as carbon pricing expands. For instance, hydropower-based smelters in Iceland and Quebec report operating costs up to 30% lower than coal-based plants in China.

Investment in renewable-powered smelting hubs is also accelerating. In 2025, new projects in Europe, Canada, and the Middle East are expected to increase global capacity for low-carbon aluminum by 3–4 million tons.

Industry Moves, Policy Levers, and Challenges Ahead

Automakers, electronics makers, and construction firms are driving the shift. Mercedes-Benz, Apple, and Volvo all signed long-term contracts for low-carbon aluminum to cut supply chain emissions.

The European Union’s Carbon Border Adjustment Mechanism (CBAM), set to take effect in 2026, will tax imports based on embedded CO₂. This policy will pressure high-emission producers to decarbonize faster.

Governments are also funding clean smelting projects. In 2025, the U.S. Department of Energy awarded over $500 million program. This program aims to boost aluminum decarbonization and improve recycling infrastructure.

Countries rich in bauxite, like Guinea and Indonesia, are enjoying higher global demand. However, they also face pressure to improve environmental standards in mining and refining.

Scaling low-carbon aluminum faces three main challenges:

• Energy transition: Replacing fossil electricity with renewables near smelters requires billions in new investments.
• Recycling infrastructure: Global collection systems remain fragmented; less than 40% of post-consumer scrap is recovered.
• Verification: Without strict standards, false “green aluminum” claims risk damaging trust.

Aluminum could become one of the biggest enablers of decarbonization. Every tonne of low-carbon aluminum can reduce lifecycle emissions in cars, solar farms, and power lines by several tonnes of CO₂.

To meet climate goals, producers, investors, and governments must collaborate. Expanding renewable energy for smelting is key. Scaling up recycling is also important, as well as having traceable and verified supply chains to succeed.

With the right policies and innovation, aluminum can become a cleaner material. It can support the energy transition by helping create lighter, stronger, and more sustainable systems.

• READ MORE: Mercedes-Benz and Norsk Hydro Join Forces for Greener EVs

The post Aluminum Prices Hit 3-Year High: Is It the Next Key Metal in the Clean Energy Shift? appeared first on Carbon Credits.

China has strengthened its hold on the world’s lithium supply chain. The Ministry of Commerce (MOFCOM) updated China’s catalogue of technologies prohibited or restricted from export. They added important battery and lithium processing technologies. This includes lithium carbonate and hydroxide preparation, along with cathode material manufacturing.

The metal is essential for electric vehicles (EVs) and battery storage. With control over lithium mining, processing, and manufacturing, China now dominates nearly every part of this fast-growing sector.

The move lets Beijing control what technical know-how leaves China. It also strengthens its grip on the clean energy supply chain. This control affects global lithium prices, investment, and clean energy goals across Europe, the U.S., and Asia.

China’s Expanding Role in Lithium Production

Lithium demand has soared as countries push for cleaner transport and renewable energy. The International Energy Agency (IEA) says global lithium demand jumped almost 30% in 2024. This rise came mainly from EV production and big battery storage needs.

China produces about 18% of the world’s mined lithium, but its real strength lies in refining. Chinese companies hold about 65% of the world’s lithium chemical processing. They also account for over 75% of global battery cell production. These numbers show that even if lithium ore is mined in Chile, Argentina, or Australia, most of it ends up in Chinese refineries, which process it into battery-grade material.

China also leads in midstream and downstream battery manufacturing. In 2024, China made more than 1,200 gigawatt-hours (GWh) of lithium-ion batteries. That’s around three-quarters of the world’s total, as reported by BloombergNEF.

Major producers like CATL and BYD supplied both domestic and foreign automakers, including Tesla, BMW, and Toyota.

The country’s major players, such as Ganfeng Lithium and Tianqi Lithium, have spent years investing in foreign mines. They invest in lithium projects in South America, Africa, and Australia. This helps them secure long-term access to raw materials. This strategy ensures China’s industry gets the feedstock it needs, supports local gigafactories, and boosts global exports.

• SEE MORE: China’s Massive Lithium Discovery Elevates It to Second in Global Reserves

How Beijing’s Moves Sway Global Lithium Markets

Lithium prices have been on a roller coaster. After record highs in 2022, prices dropped sharply in 2023 and early 2024 due to oversupply. But by mid-2025, prices in China began to rebound. Lithium carbonate traded between CNY 59,000 and 69,000 per metric ton (roughly US$8,500–9,000).

Industry analysts say Chinese producers used this price flexibility to outcompete foreign suppliers. When prices drop, many non-Chinese mining firms, especially in Australia and Africa, struggle to stay profitable.

Some market experts think China oversupplied the market on purpose. They believe this was to keep global influence and slow down rival producers.

Despite recent rebounds, volatility remains high. The IEA warns that lithium demand may double by 2030. It could reach over 1.3 million tonnes of lithium carbonate equivalent (LCE) each year. Without new mines and processing capacity, global shortages might return. This could lead to price spikes that impact battery and EV production worldwide.

• SEE LITHIUM PRICES here…

Technology and Export Controls

China’s advantage goes beyond production scale. It now leads in processing technology, equipment, and battery chemistry. Beijing is now limiting exports of lithium-processing machines and technology. This move aims to protect local industries and manage intellectual property.

In 2025, several Chinese equipment suppliers limited shipments abroad. This makes it harder for competitors in the U.S. and Europe to build their own refining systems. These export limits are part of a broader strategy to keep the high-value stages of the supply chain inside China.

Meanwhile, the U.S. IRA provides up to $369 billion for climate and energy. It includes strong incentives for local battery and mineral production. Europe’s Critical Raw Materials Act aims for 40% of critical minerals used in the EU to come from local or allied sources by 2030. But industry analysts say it could take up to a decade for these efforts to significantly reduce dependence on China.

The Global Response: Diversifying Supply Chains

Governments and companies are now racing to reduce dependence on China. The United States, Canada, and Australia are expanding domestic mining and refining. Chile and Argentina, along with other South American nations, are building local industries. They aim to process lithium instead of just exporting raw materials.

• RELATED: U.S. Lithium Push: How Washington’s Bet on Lithium Americas Could Reshape the Global Market

The IEA warns that global lithium supply must increase sevenfold by 2035 to meet climate goals. That means bringing new mines and refineries online faster while maintaining environmental standards.

In 2024, the World Bank estimated that over €680 billion (US$730 billion) was invested in renewable power and storage. However, only a small part funded the raw material supply. If supply growth lags, battery shortages could slow EV production by the late 2020s.

However, challenges persist. Lithium extraction can strain water resources and ecosystems. Building new facilities also requires stable regulation and financing, which can take years to secure.

Surge Battery Metals: Strengthening North American Supply

In North America, one of the emerging players helping to diversify lithium supply is Surge Battery Metals (CSE: NILI). The company is developing the Nevada North Lithium Project. This project is in one of the U.S.’s most promising lithium-rich areas.

Surge aims to produce battery-grade lithium for the growing North American EV market. Its exploration results have shown strong potential for large-scale, high-grade lithium clay deposits. Projects like Surge’s align with U.S. efforts to build a secure domestic supply chain and reduce reliance on imports from China.

Surge helps ensure supply security and meet environmental goals by creating cleaner extraction and processing methods. Its work supports the U.S. Department of Energy’s plan to create a domestic battery materials supply chain. It seeks to meet 90% of the country’s lithium demand by 2035.

What’s Ahead: Competition, Cooperation, and Climate Goals

The global lithium race is about more than profits. It shapes the pace of the clean energy transition. China’s dominance gives it both economic power and geopolitical influence. Western economies are investing a lot to find new supplies and to lower strategic risks.

The market outlook suggests demand will remain strong throughout the decade. Analysts expect lithium prices to stabilize as new supply enters the market, but competition will remain intense.

For the world to meet its climate goals, cooperation will be as important as competition. Shared technology, recycling, and sustainability standards could help reduce emissions and stabilize supply chains.

Surge Battery Metals and other new miners are working to localize production. They aim to boost transparency and ensure lithium supply helps the clean energy transition, not hinders it.

China now controls the heart of the global lithium industry, from mining and refining to battery exports. This dominance brings both opportunity and risk. The rest of the world is responding, but catching up will take time, investment, and innovation.

• READ MORE: Lithium Americas (LAC) Stock Jumps 95% as Trump Seeks Government Equity in Nation’s Largest Lithium Mine

The post China’s Grip on Lithium Tightens as Global Supply Struggles to Keep Up appeared first on Carbon Credits.

The U.S. depends heavily on imported uranium to power its nuclear reactors, using about 50 million pounds each year while producing less than 1% at home. Boosting domestic uranium production is crucial for energy security and reducing reliance on foreign sources. In this context, Anfield Energy Inc. (NASDAQ: AEC; TSXV: AEC) is making progress with its Velvet-Wood uranium project in San Juan County, Utah.

The Utah Department of Oil, Gas, and Mining recently approved the project for construction. This allows Anfield to move quickly toward production.

Velvet-Wood Gains Green Light for Rapid Development

In May, Anfield Energy Inc. announced that the U.S. Department of the Interior approved its Velvet-Wood uranium project in San Juan County, Utah.

This project was the first mining initiative approved under a new fast-track permitting process by the U.S. Department of the Interior. This process, introduced after President Trump’s energy emergency declaration in January 2025, lets energy projects complete environmental reviews in just 14 days.

By selecting Velvet-Wood, federal agencies highlighted its importance for the domestic uranium and vanadium supply.

Notably, Secretary of the Interior Doug Burgum said the Bureau of Land Management ensures safe and responsible extraction while protecting the environment.

With federal and state approvals in hand, Anfield plans to start mobilization immediately. The company expects to break ground within 30 days. They will:

• reopen the mine portal
• dewater the site
• build surface facilities
• develop a new mine incline.

These steps aim to bring Velvet-Wood into production quickly while keeping safety and environmental standards high.

• ALSO READ: Orano’s Bold Move: A Multi-Billion Dollar New Uranium Plant Set for Tennessee 

Anfield Boots U.S. Energy Security with Domestic Production

Anfield acquired Velvet-Wood in 2015. The mine previously produced around 4 million pounds of uranium and 5 million pounds of vanadium from 1979 to 1984.

• A preliminary economic assessment shows 4.6 million pounds of uranium at a grade of 0.29% eU3O8, plus additional inferred resources.

CEO Corey Dias said the approvals clear the way for building the mine and starting production. The company also plans to increase its reclamation bond with the Bureau of Land Management to meet federal land restoration rules.

Anfield’s project helps the U.S. reduce dependence on foreign minerals. The country imports uranium from Russia, Kazakhstan, and Uzbekistan. Vanadium supply mainly comes from China, Russia, South Africa, and Brazil.

By producing uranium and vanadium domestically, Anfield enhances energy security and supports industries such as nuclear power, aerospace, and defense.

Uranium and Vanadium: Key Strategic Materials

Uranium powers nuclear reactors, fuels U.S. Navy submarines, and helps produce medical isotopes. It is also used in tritium production for national defense. Vanadium strengthens steel and titanium alloys used in both commercial and military aircraft. Together, these minerals are vital for energy, defense, and industrial security.

EIA’s Domestic Uranium Production Report Second-Quarter 2025 highlights that in Q2 2025, the U.S. produced 437,238 pounds of uranium concentrate (U3O8), up 41% from the first quarter’s 310,533 pounds.

Production came from the following mines:

Underground Mining Keeps Environmental Impact Low

Velvet-Wood will focus on underground mining. The company will use existing mine workings and develop new mineral areas. This approach keeps surface disturbance to just three acres and makes use of the old Velvet mine site.

Anfield also owns the Shootaring Canyon mill, one of only three licensed uranium mills in the U.S. Restarting this mill will allow the company to convert uranium ore into concentrate, reduce reliance on imports, and support domestic nuclear fuel production.

Economic and Strategic Benefits

Anfield combines strong assets with efficient operations. Its hub-and-spoke model links mining sites with processing mills, maximizing the value of Velvet-Wood’s resources. With measured resources, a licensed mill, and fast government approvals, the company is ready to meet growing demand for uranium and vanadium.

The project also brings jobs to Utah and supports local communities. Restarting the Shootaring Canyon mill adds processing capacity, lowers costs, and improves efficiency.

Moving Toward a Sustainable Energy Future

Anfield focuses on sustainable growth. Its operations balance environmental responsibility with energy and defense needs. By producing domestic uranium and vanadium, the company supports a carbon-free energy future while reducing reliance on imports.

Velvet-Wood shows how companies and supportive policies can address energy and security challenges. By using old mining assets and modern techniques, Anfield aims to become a leading U.S. uranium producer. It’s fast move from permitting to production sets an example for other critical mineral projects.

• MUST READ: Uranium Energy Corp (UEC) Reports $66.8M Revenue in 2025, Expands U.S. Nuclear Supply Chain and Sustainability Goals

The post U.S. Uranium Production Set to Rise as Anfield Energy Gains Velvet-Wood Approval appeared first on Carbon Credits.