Electronic Vehicles to Surge Vehicle Demands

Aluminium is one of the most versatile metals and hence used across varied sectors. Automobile industry is no exception. The initial cars weighed about 800 kilograms. With advancement made in the technology and as our dependency began to only grow on cars for utility, the weight of an average car also increased. An average car weighs about 1300 kilograms – 10 percent of which is aluminium (130 kilograms). (https://www.reuters.com/article/uk-metals-cars-factbox-idUKTRE68L1NY20100922 ) 

The weight of an automobile directly impacts the fuel consumption. A heavy automobile will consume more fuel than a lighter alternative. Aluminium is one-third the weight of steel. This means that the vehicle’s parts can be made stronger and thicker as compared to steel, while still attaining weight goals.

Electric Vehicles or EV are propelled by one or more electric motors by using the energy stored in the vehicle battery – it uses an electric motor instead of an internal combustion engine. With growing awareness around environmental crisis and the growing shortage in fuel resulting in high fuel prices, EVs have been instrumental in addressing the key environmental, fuel, and cost problems that usage of a conventional vehicle poses and the demand for aluminium is set to rise by several hundred tonnes by 2030. (https://auto.economictimes.indiatimes.com/autologue/evs-to-brighten-aluminium-industry-prospects/4809)

With rise of EVs there will be a subsequent rise in demand for aluminium. This directly impacts the cost of aluminium in the market. With demand, there will also be equal amount of mining for metal ore. But wouldn’t this beat the sole purpose of using an EV? Aluminium can be recycled infinitely with no impact on their usability or quality. As an EV uses more amount than a conventional vehicle, it will only be wise to make use of recycled aluminium. 

One way to do it is by deploying techniques in urban mining. So, what is Urban mining? Urban mine is the stockpile of metals found in the discarded waste electrical/electronic equipment (WEEE). Urban mining is the process of recovering these metals by applying mechanical and chemical treatments. (https://en.wikipedia.org/wiki/Urban_mining)

UAE is one of the biggest automobile markets in the world. (https://www.focus2move.com/emirates-automotive-market/) With more and more consumers turning to EVs, it is imperative to expect a much significant demand for aluminium. The aluminium scrap in Dubai offers recycling opportunities like no other. Lucky Group has consistently championed recycling for the greater cause. An Urban Miner, we pride ourselves in being an organization that recycles in the most efficient and advanced manner to contribute our part in the global efforts towards greener planet.

Disclaimer: This article(s) has been prepared solely for information purpose, using publicly-accessible sources that are believed to be accurate and reliable at the time of publishing. LUCKY GROUP accepts no liability whatsoever for any loss or damage resulting from the use of information, images or opinions expressed in the report. LUCKY GROUP does not give warranty of any kind regarding the completeness, accuracy and reliability of the information included in the article(s). 

SWOT ANALYSIS FOR METAL RECYCLING INDUSTRY

SWOT stands for strengths, weaknesses, opportunities, and threats. It is an analytical framework that used to determine business position and develop strategic plans to overcome challenges. (https://en.wikipedia.org/wiki/SWOT_analysis). Today, will apply this framework to understand the global metal recycling market.

Photo Reference: From Pixabay copyright free images

Strengths and Weakness

The metal recycling market is fuelled by the growth in construction sector – it held the largest market share of 35.1% in 2019. The demand for ferrous material in metal recycling sector is growing as it is used significantly. An ideal example would be of the year 2018 when the recycling rates for ferrous scrap in cars was 106% while structural steel was 98%. (https://global-recycling.info/archives/4094)

To sustain in modern world, products are made with due research and contains complex mixes of metals. For instance, a mobile phone can contain more than 40 elements. As we advance further, the biggest hit sector is the metal recycling industry. As a product becomes more complex, metal extraction and recycling become harder. As they form a significant source for recyclable metal, it is important for metal recycling companies learn more about becoming an urban miner. Urban mining refers to extracting metals from discarded electrical and electronic equipment stockpiles.

Many countries do not recycle the metal scrap they produce – either at its scale, or to its entirety. The reason behind this could be the traced to the uneven advancement made in recycling technologies. In some instances, the advanced recycling technologies are not affordable or accessible to all.  (https://www.resourcepanel.org/reports/metal-recycling)         

Opportunities and Threats

Some countries generate more metal scrap than others. In this case, there is an import/export of recycled metals/metal scraps. While metal recycling business faces its own challenges at some levels – it can be a bigger opportunity for the industry on global scale. For example, in the year 2018, demand for steel was slow in China. However, it corresponded with a rise in the rest of the world. One of the biggest reasons was the strength of the USA economy. It resulted in increased demand for recycled metals in the North American region. (https://global-recycling.info/archives/4094)

With the on-going pandemic, demand for recycled metals has seen a surge – especially as prices for copper, steel, and other raw materials have risen. (https://global-recycling.info/archives/4094). Metal recycling companies in Dubai see variety of metals in varying amounts of composition. Its biggest challenges lies in ensuring that scraps are recycled to its optimum limit. Lucky Group prides itself in contributing towards realizing its goal in contributing towards this cause on global level.

Disclaimer: This article(s) has been prepared solely for information purpose, using publicly-accessible sources that are believed to be accurate and reliable at the time of publishing. LUCKY GROUP accepts no liability whatsoever for any loss or damage resulting from the use of information, images or opinions expressed in the report. LUCKY GROUP does not give warranty of any kind regarding the completeness, accuracy and reliability of the information included in the article(s).