In this detailed article, we'll research where aluminum is found in the world and find the largest aluminum producing countries. If you want brief knowledge on which nations are driving the international market of this widely-used and mined metal, read 5 Largest Aluminum Producing Countries In The World.
Aluminum is the third most abundant element in the Earth's crust, comprising approximately 8% by weight. However, aluminum rarely exists in its pure form and is typically found in bauxite ore. Bauxite deposits are in a wide belt around the equator, with the largest bauxite reserves in Guinea, Australia, Vietnam, and Brazil.
Furthermore, the commercial extraction of aluminum also happens in China, which amounts to 58% aluminum smelter production. China asserted its dominance as the largest producer of aluminum in the world in 2022, owing to its extensive year-end mining capacity.
Since China also has the largest aluminum reserves in the world and immense smelting capacity, its assertion as the leading producer is undisputed. However, environmental concerns and resource-intensive aluminum smelting are obstacles to the country's aluminum industry.
Other leading countries in aluminum production are Russia and India, which, despite having smaller bauxite reserves, produce a significant percentage of aluminum because of huge domestic demand and integrated production systems. Notably, Russia's aluminum industry, driven by Rusal, has flourished despite geopolitical pressures and economic sanctions.
Since aluminum production depends on a country's bauxite mining, we recommend reading Top 20 Largest Producers of Bauxite In The World.
Global aluminum market was $179.32 billion in 2022 and is projected to reach $277.5 billion by 2031 by the end of this decade. This market will grow at a compound annual growth rate (CAGR) of 5.61% from 2022 to 2031 and further contribute to the GDP of the largest aluminum producing countries in the world.
Developing sectors like automotive, construction, and packaging industries require aluminum to meet their production. Therefore, the global aluminum consumption in 2022 was recorded to be 65.87 million metric tons. This figure is projected to reach 78.4 million metric tons by 2029, owing to the expansion in major industries worldwide. Since aluminum is lightweight, durable, and corrosion-resistant, it has been increasingly adopted as a preferred manufacturing material.
While this increase is a positive sign for the major aluminum producing countries in the world, the depletion of its reserves is concerning. Hence, countries are implementing more diverse aluminum recycling efforts to reduce the load of smelters. In the automotive and building sectors, aluminum recycling reaches up to 90%. As a result, 75% of aluminum ever produced is still in use today, indicative of this industry's long-term stability.
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Alcoa Corporation (NYSE:AA) is the largest American aluminum company that holds a prominent position in aluminum mining. Alcoa Corporation (NYSE:AA) has headquarters in Pittsburgh, Pennsylvania, and spearheads the industry through its expansive bauxite mining to the manufacturing of aluminum products. Alcoa Corporation (NYSE:AA) focuses on sustainable mining so the raw sources for aluminum don't get unfairly exploited.
Another prominent name in the aluminum industry is the Rio Tinto Group (NYSE:RIO). In 2022, Rio Tinto Group (NYSE:RIO) produced a substantial 521,100 metric tons out of a total of 3 million metric tons of aluminum. Rio Tinto Group (NYSE:RIO) is also the world largest aluminum-producer company, with a market capitalization of $116 billion. It has well-planned mining strategies that don't exhaust aluminum resources from the Top 10 largest aluminum producing countries in the world.
Another company doing well in aluminum mining is Nucor Corporation (NYSE:NUE), based in Charlotte, North Carolina. Nucor Corporation (NYSE:NUE) aims to improve the quality of its aluminum products, increase yield, and minimize environmental impact. Notably, Nucor Corporation (NYSE:NUE) emphasizes recycling efforts that underscore its commitment to sustainable mineral exploitation.
15 Largest Aluminum Producing Countries In The World
Photo by Shane Cottle on Unsplash
We relied on the USGS Mineral Commodity Summaries of 2023 and 2018 as our primary data sources to rank the 15 largest aluminum producing countries. Owing to its diverse data sources, USGS provides extensive and annually updated databases on all minerals to showcase which country produces maximum aluminum in the world.
The annual USGS reports offer well-documented information that covers multiple aspects related to minerals, i.e., production, consumption, and trade. As we analyzed the summaries, we studied the sections focusing on aluminum to understand the aluminum production statistics of all major countries. Moreover, since the 2023 summary focused on the 11 largest aluminum producers, we dug deep into the SUSG summaries from 2018, 2019, and 2020. Eventually, we were able to rank based on solid aluminum production statistics for a clear perspective on this global market.
Based on our understanding of where aluminum is found in the world, here are this metal's largest producers:
Aluminum Smelter Production in 2018: 0.66 million metric tons
Brazil hit 0.66 million metric tons of aluminum in 2018, and impacted the global market of this key industrial metal. The largest alumina mine in Brazil is the MRN mine, owned by Vale S.A. (NYSE:VALE), which extracted 10.46 million metric tons of bauxite in 2022, a major portion of which went to aluminum production.
Aluminum Smelter Production in 2019: 0.697 million metric tons
Data reveals that Qatar's aluminum smelter output reached 0.697 million metric tons in 2019. This industry-specific statistic hints at the Gulf nation's significant role in the global aluminum sector. The most notable aluminum smelter in Qatar is Qatalum, located in the Mesaieed Industrial Area as a joint venture between QatarEnergy and Norsk Hydro.
Aluminum Smelter Production in 2019: 0.699 million metric tons
South Africa's aluminum sector achieved a noteworthy output of 0.699 million metric tons from its smelters in 2019. This data indicates the significance of aluminum production to South Africa's economy and advancements in its smelting operations. The largest aluminum smelter in the Northern Hemisphere, named Hillside Aluminium, is also located in Richards Bay, South Africa.
Aluminum Smelter Production in 2022: 0.75 million metric tons
Iceland's aluminum production capacity experienced noteworthy utilization of 0.75 million metric tons in 2022. This achievement owes to the country's renewable geothermal and hydroelectric energy sources to fuel the energy-intensive smelting process. The Grundartangi smelter in Iceland alone has a production capacity of approximately 317,000 metric tonnes of aluminum with its low-cost operations.
Aluminum Smelter Production in 2017: 0.76 million metric tons
Malaysia, owing to its 110 million metric tons of bauxite reserves, demonstrated significant industrial productivity in the non-ferrous metals sector. The country's output amounted to 0.76 million metric tons of smelted aluminum in 2017.
Aluminum Smelter Production in 2019: 0.85 million metric tons
The major alumina refinery in KSA is Ma'aden Bauxite and Alumina Company (MBAC), with a mining capacity of 1.8 million metric tons of alumina. Reports indicate Saudi Arabia yielded 0.85 million metric tons of aluminum in 2019. This smelter, paired with the country's capacity, makes it a top player in the global aluminum market.
Aluminum Smelter Production in 2022: 0.86 million metric tons
As per the USGS summary, the United States had an aluminum smelter production of 0.86 million metric tons in 2022. Although not exceptional, this yield is a result of the major US aluminum smelters operating at their full capacity. Some smelters also worked at reduced capacity because of increased mining costs and energy shortages but impacted industry demands in the automotive, packaging, and construction sectors.
Aluminum Smelter Production in 2022: 1.4 million
Data reveals that Norway mined 1.4 million metric tons of aluminum in 2022. The biggest aluminum refinery in Norway is Norsk Hydro, which operates many aluminum plants in Sunndal, Årdal, and Husnes. It's also Europe's third-largest aluminum maker that impacts this non-ferrous metal industry, and helps Norway's resource management strategies.
Aluminum Smelter Production in 2022: 1.5 million metric tons
Australia generated 1.4 million metric tons of aluminum in 2022 via its vast smelters and refineries. Its largest aluminum smelter is Tomago Aluminum, which has been functional since 1983 and contributes $2.2 billion annually to the country's economy. Tomago's robust infrastructure and innovative processing techniques continually support Australia's steady climb in global aluminum production rankings.
Aluminum Smelter Production in 2022: 1.6 million metric tons
The Kingdom of Bahrain has been influencing this metal's market over the years. In 2022, Bahrain's smelter production was 1.6 million metric tons of aluminum. Aluminium Bahrain (Alba) is the world's 2nd largest and Bahrain's largest aluminum smelter, with a production capacity of 1.548 million metric tons. This smelter has also fostered stable growth in Bahrain's non-oil sector, owing to its diverse refining infrastructure.
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Disclosure: None. 15 Largest Aluminum Producing Countries In The World is originally published on Insider Monkey.
In 2023, the International Aluminium Institute (IAI) reported a 2.25 per cent annual increase in global primary aluminium production, reaching a total of 70.593 million tonnes by the end of December. However, this growth rate marked a slight slowdown compared to the previous year when the industry experienced a 3 per cent increase, reaching 69.038 million tonnes in 2022 from 67.092 million tonnes in 2021.
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By December 2023, the world's primary aluminium production had reached 6.04 million tonnes, contributing to a second-half output of 36.08 million tonnes. This H2 output reflected a notable 4.58 per cent increase from the first half, which stood at 34.5 million tonnes. The surge in production during the latter part of 2023 was attributed to alleviating the energy crisis in Europe, leading to the resumption of production at numerous smelters.
In December, global primary aluminium production exhibited a 3.25 per cent month-on-month increase, rising from 5.85 million tonnes to 6.04 million tonnes. Additionally, on a year-on-year basis, there was a 2.03 per cent growth from 5.92 million tonnes in December of the previous year, as the International Aluminium Institute (IAI) reported. The daily average production for the month stood at 194,900 tonnes, marginally lower than the 195,000 tonnes recorded in the preceding month.
According to the IAI, China's primary aluminium production in 2023 totalled 41.67 million tonnes, marking a 3.07 per cent increase compared to the previous year's 40.43 million tonnes. In December alone, China produced 3.57 million tonnes, reflecting a 3.58 per cent month-on-month rise from 3.45 million tonnes and a 2.59 per cent year-on-year increase from 3.48 million tonnes.
Approximately 75 per cent of all aluminium ever produced is now under active use, per estimates provided by the Aluminium Association. Given the widespread recognition of aluminium as a highly sustainable alternative, several businesses are actively working to reduce the carbon emissions associated with the aluminium industry.
With around 6.7 million tonnes of aluminium produced, the company reported operating revenue of RMB 1,884 billion for the first three quarters, achieving a total profit of RMB 110.59 billion and a net profit of RMB 92 billion. Notably, the net profit attributable to the parent company stood at RMB 53.52 billion, surpassing the RMB 41.92 billion recorded in the same period of 2022. Despite facing challenges such as fluctuating market prices and localized production constraints leading to reduced output, Chinalco demonstrated resilience and growth. The company credited its success to leading cost competitiveness and advantages in the industrial chain.
The aluminium market in China experienced increased volatility throughout the year, posing continuous challenges to business operations. However, in the year's second half, Chinalco capitalized on the recovery of the aluminium oxide and electrolytic aluminium markets. Leveraging its full industrial chain advantage, the company ensured stable and optimized production of its main products, leading to an expansion in profitability.
Data indicated that third-quarter production of refined aluminium oxide and electrolytic aluminium increased compared to the second quarter. Chinalco exceeded its progress target for operating profit in the third quarter, achieving a non-GAAP net profit growth of 10.76 per cent year-on-year, solidifying its position as an industry leader.
Established in 1994, China Hongqiao Group Limited is a prominent company specializing in aluminium production. During the first half of 2023 (H12023), Hongqiao Group's revenue amounted to approximately RMB 65,733.9 million, representing a year-on-year decrease of roughly 4.4 per cent. The gross profit for the same period amounted to approximately RMB 58,923.6 million, reflecting a significant year-on-year decline of about 60.6 per cent.
Furthermore, the net profit attributable to shareholders of the Company stood at approximately RMB 24,566.23, signalling a substantial year-on-year decrease of roughly 68.7 per cent. In the same period, the Group's sales volume of aluminium alloy products reached approximately 2.824 million tonnes, indicating an increase of nearly 5.7 per cent compared to the sales volume of about 2.670 million tonnes for the corresponding period in the previous year.
Presently, Hongqiao is the world's second-largest aluminium producer, trailing behind Chinalco. With a production capacity of 6.212 million tonnes, the Group's output of aluminium alloy products reached approximately 3.059 million tonnes, showcasing a Y-o-Y increase of roughly 4.4 per cent. Simultaneously, the production of aluminium fabrication products amounted to roughly 377,000 tonnes, marking a year-on-year increase of approximately 4.3 per cent.
During the first half of 2023, Rusal generated total revenue of US$ 5,945 million. In H1 2023, the global supply of primary aluminium climbed by 2.4 per cent year on year to 34.4 million tonnes. In H1 2023 the total amount of primary aluminium produced by Rusal stood at 1913 tonnes, reflecting a Y-o-Y growth of 22 per cent from 1,891 tonnes.
In the first half of 2023, sales of primary aluminium and alloys decreased by US$1,093 million, or 18.4 per cent, to US$4,839 million compared to US$5,932 million in the first half of 2022. This decrease was mainly due to a 25.7 per cent decrease in the average price per tonne of aluminium, which went from US$3,365 per tonne in the first half of 2022 to US$2,501 per tonne in the first half of 2023. This decrease was driven by a decrease in the LME aluminium price, from US$3,075 per tonne in the first half of 2022 to US$2,331 per tonne in the first half of 2023. However, this decrease in revenue was partially offset by a 9.8 per cent increase in the sales volume of primary aluminium and alloys.
As per the data, in the initial half of 2023, the net profit attributable to the owners of Rio Tinto amounted to $5.1 billion, marking a decrease from $8.9 billion in the corresponding period of 2022. The total amount of primary aluminium produced by the company during 2023 stood at 3.2 million tonnes, representing a Y-o-Y growth of 9 per cent.
Specifically, the recorded profit after tax for the first half of 2023 was $4.9 billion, compared to $9.4 billion in 2022. Within this, a loss of $0.2 billion was attributed to non-controlling interests in the first half of 2023, as opposed to a profit of $0.5 billion in the first half of 2022.
Rio Tinto's total revenue for 2023 stood at US$26,667 million. From July to September 2023, the business reported that its aluminium output amounted to 828,000 tonnes, a 2 per cent increase Q-o-Q and a 9 per cent increase Y-o-Y, owing to entire capacity operations at Kitimat smelter and completed cell recovery work at Boyne smelter. Other smelters also displayed consistent operations, which resulted in increased aluminium output. Rio Tinto's total aluminium output in the first nine months of the year was 2.43 million tonnes, a 9 per cent increase year on year.
The financial report for the fourth quarter of 2023 highlights Rio Tinto's outstanding operational performance. Additionally, aluminium production surged by 9 per cent, totalling 3.3 million tonnes. This significant growth is attributed to the full-scale resumption of operations at Rio Tinto's Kitimat aluminium smelter and the successful completion of a cell recovery initiative at Boyne.
Emirates Global Aluminium (EGA) reported robust financial results for the first half of 2023, showcasing resilience and strategic foresight in navigating dynamic market conditions. During this period, EGA reported adjusted Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) of AED 4.2 billion (US$1.1 billion), a commendable achievement considering the market's moderation in contrast to the significant volatility experienced in the previous year. This figure marks a decline from AED 7.6 billion (US$2.1 billion) in the first half 2022.
The net profit for H1 2023 reached AED 2.0 billion (US$533 million), reflecting a decrease from AED 5.9 billion (US$1.6 billion) in H1 2022. Similarly, revenue reduced to AED 14.8 billion (US$4 billion) from AED 18.3 billion (US$5 billion) in the first half of 2022. Despite market fluctuations, EGA maintained a competitive edge, with the EBITDA margin of its aluminium segment standing at 27 per cent, albeit lower than the 41 per cent recorded in H1 2022.
Conclusion
The global aluminium market is poised for significant growth between 2023 and 2030. Sustainable materials are in high demand, and regulators are pushing for a shift towards a circular economy, so companies have to find more sustainable, durable, and easily recyclable materials. A lightweight and robust material with endless recyclability, aluminium emerges as the leading sustainable material.