Sortera: Recycling Aluminum Scrap for Cash | Sustainable Solutions

The Potential of Aluminum Recycling: A Technological Breakthrough

Aluminum stands out as a highly recyclable material, capable of being reused indefinitely. Recycling aluminum often proves more cost-effective than producing new aluminum, as it significantly reduces energy consumption. Despite these advantages, approximately only one-third of the aluminum utilized in the United States is currently recycled.

The Challenge of Sorting Aluminum Scrap

A primary obstacle to increased aluminum recycling lies in the difficulty of effectively sorting mixed aluminum scrap – a problem that has historically challenged the recycling sector. Successfully separating different aluminum grades is crucial for maximizing the value of recycled materials.

Sortera’s Innovative Solution

Michael Siemer, CEO of Sortera, believes his company has developed a pivotal solution to this longstanding issue. Sortera asserts that its system can differentiate between aluminum grades with an accuracy exceeding 95% – a significant advancement with the potential to unlock a substantial, previously inaccessible resource within the recycling industry.

How the System Operates

The core of Sortera’s technology is an artificial intelligence model. This model identifies various aluminum grades by analyzing data gathered from lasers, X-ray fluorescence technology, and high-speed cameras.

The system must categorize each aluminum chip – roughly the size of a potato chip – within a fraction of a second. “Ten milliseconds represents a considerable timeframe,” Siemer explains. Upon grade identification, a network of precisely controlled air nozzles directs puffs of air to separate the chip and deposit it into the appropriate collection bin.

The Importance of Speed and Accuracy

This speed and precision are vital because conventional recycling methods often require melting the aluminum before its alloy type can be determined. Improperly sorted alloys result in a lower-value mixed material, as customers cannot guarantee the required properties.

“There has been considerable interest in processing this unsorted aluminum, but no one has been able to successfully unlock its potential,” Siemer states.

Profitability Through Precision

Sortera’s high sorting accuracy has also enabled the company to achieve profitability, a common challenge for many startups. “Profit margins increase exponentially above 90% accuracy; 92% yields a modest margin, 95% a substantial one, and 98% delivers a very significant margin.”

The company has been cash flow positive since August, based on operations at its single plant located in Indiana. To fund the construction of a second facility in Tennessee, Sortera recently secured $20 million in equity and $25 million in debt, led by VXI Capital and accounts managed by T. Rowe Price, with participation from Overlay Capital and Yamaha Motor Ventures, as exclusively reported to TechCrunch. Trinity Capital is also providing equipment financing.

Expansion and Future Growth

The new plant, situated near Nashville, is scheduled to begin operations in April or May. “It will be a direct replication of our Indiana plant,” Siemer confirms. He notes that the Indiana facility operates continuously, 24/7, processing millions of pounds of aluminum monthly.

Source of the Aluminum Scrap

The aluminum scrap processed by Sortera primarily originates from shredded automobiles. The unique fracturing patterns of each aluminum grade during shredding provide visual cues that the AI utilizes for classification. “The chemical variations become apparent during the shredding process,” Siemer explains. Distinctive tears and folds in different alloys offer clues to the system. “Within a 10-millisecond window, we can confidently identify a specific grade, such as 356 aluminum.”

Applications and the Automotive Industry

As Sortera expands, a significant portion of the recycled aluminum is expected to be reintroduced into automotive manufacturing. Automobile manufacturers are increasingly utilizing aluminum to reduce vehicle weight and enhance fuel efficiency. “Representatives from every major auto manufacturer have visited our Indiana facility at least twice,” Siemer reports.

Future Focus and Potential

Sortera is currently exploring methods for processing other metals, including copper and titanium. However, the company’s primary focus remains on aluminum for the foreseeable future. “We have the capacity to efficiently sort the 18 billion tons of aluminum produced annually in the U.S., and every pound could be profitably sold domestically.”