The global automotive industry is witnessing a significant shift towards the use of aluminum, with an expected average annual growth rate of 25% over the next four to five years. This trend is driven by the need for lighter vehicles to improve fuel efficiency and reduce emissions. However, the United States lags behind Europe and Japan in this transition, which could impact the future growth of the U.S. aluminum industry.
The world's largest aluminum production factory, located in Atlanta, is run by Vailixi Cars and Special Products Company. The company's Vice President and General Manager, Brad Mosul, has predicted this surge in aluminum consumption. As the automotive industry increasingly opts for alternative materials to steel, the demand for aluminum is expected to rise significantly.
In North America, the annual consumption of aluminum is projected to double. This is primarily due to the region's relatively low starting point, resulting in a higher increase in aluminum usage compared to other regions. Mosul notes that the U.S. aluminum industry is still in its early stages compared to Europe.
To achieve energy conservation, emission reduction, and improved fuel economy, it is essential to reduce vehicle weight. As a result, car manufacturers are enhancing their processing procedures and accelerating the shift from steel to aluminum. Aluminum offers significant advantages in reducing vehicle weight across all types and sizes of cars.
The push for aluminum is not only driven by consumer demand but also by regulatory requirements. The U.S. Department of Transportation and Environmental Protection Agency are setting new standards, challenging car manufacturers to improve fuel economy and emission control.
The use of aluminum is not limited to passenger cars. It is also widely used in trailers for transporting grain and other durable goods. In the automotive industry, aluminum has been used in various components, such as doors and shell guard boards.
The construction of the Aspen D car aluminum production line is expected to be completed by the summer or fall of 2023. Achieving full production capacity will take an additional 12 to 18 months. Once completed, this project will become a comprehensive aluminum rolling joint enterprise.
Aspen D Godot, the largest manufacturer of aluminum from melting scrap to hot rolling through the cold rolling process, will provide the bulk of the stock. The company has received financial incentives from New York and other local institutions, as well as tax-free income or tax breaks through New York's Empire State Development Program.
Despite the lack of clarity on the exact amount of these incentives and tax exemptions, it is understood that these figures will be announced in due course.
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