Aurubis Accelerates Recycling Investment in the US and EU: Leading the Secondary Raw Material Revolution

The German non-ferrous metals giant, Aurubis, is making significant inroads on both sides of the Atlantic, cementing its leadership position in copper recycling and production. The company’s new growth strategy not only reflects its market expansion ambitions but also illustrates a growing global trend: stakeholders are rushing to secure access to secondary raw materials (recycled materials) amidst tightening regulations and customer requirements.

On October 8, 2025, Aurubis unveiled its revised strategy, stating: “Following a period of strong investment-led growth, Aurubis is shifting its focus towards realizing the efficiency gains from existing investments and pursuing smart, targeted, value-creating growth that aligns with the company’s core strengths.”

These efforts include expanding commercial reach and service levels to access new material streams and strengthen existing ones. The clearest evidence is the inauguration of the new multimetal recycling plant in Richmond, Georgia, marking Aurubis’s first facility in the US. Simultaneously, the company has secured millions of USD in funding from the European Investment Bank (EIB) to expand its recycling and copper production capacity in Europe.

These moves occur against a backdrop of surging demand for copper and critical secondary materials, forcing smelters to reposition themselves to capture value from the increasing tide of electronic waste (e-waste).

1. First Footprint in the US Market: The Richmond Plant

The most prominent investment in Aurubis’s new strategy is the $740 million multimetal recycling plant in Richmond, Georgia. In late September, the facility achieved a key operational commissioning milestone.

1.1. Ambition and Advanced Technology

The Richmond plant is designed to process up to 90,000 tonnes of multimetal scrap per year in its initial phase, recovering high-demand metals such as copper, nickel, tin, precious metals, and other critical inputs.

Speaking at the ribbon-cutting ceremony, Aurubis CEO Dr. Toralf Haag emphasized: “The commissioning of the Richmond facility marks a major milestone in Aurubis’s growth journey. We are a pioneer and have built the first Greenfield smelter in the US in over a century. Our timely entry into the US market, coupled with our unique capabilities and a supportive funding environment, provides a solid platform for further development in one of the world’s most attractive metals markets.”

The plant is not just a production facility but a symbol of the metal industry’s transformation. It represents the adoption of advanced, more efficient, and environmentally friendly metallurgical processes, particularly in treating complex scrap types like e-waste (dubbed “urban mining”).

1.2. Strategic Position in the US Green Economy

Aurubis’s presence in the US also reflects the US government’s efforts to bolster domestic capacity for critical materials. Although copper is not yet officially listed, its inclusion is currently being proposed for the US Department of the Interior’s critical minerals list.

Policymakers increasingly view copper as a strategic material for electrification and the energy transition. By entering the US market at this moment, Aurubis is positioning itself as a key player in the US effort to recover metals from urban mining and e-waste. This allows the company to benefit from preferential policies, financial support, and rising demand for domestically produced materials.

2. Fueling Growth in Europe: The EIB Loan

Concurrently with its US expansion, Aurubis signed a €200 million ($232 million), five-year loan agreement with the European Investment Bank (EIB) to expand its recycling and copper production capacity in Europe.

2.1. The EIB’s Role in the Circular Economy

The EIB has designated this project as a significant contribution to Europe’s Circular Economy ambitions and energy transition goals, highlighting copper’s central role in electrification and renewable energy grids.

Mr. Steffen Hoffmann, CFO of Aurubis, shared: “With the EIB, we have gained a strong European partner to support our strategic investments in a sustainable future. This financing commitment recognizes the societal relevance and outstanding quality of our investment projects. The attractive terms of the loan compared to market conditions allow us to further diversify our funding base.”

Ms. Nicola Beer, Vice President of the EIB, added: “Securing critical raw materials like copper and expanding recycling activities in Europe are essential to Europe’s resilience, sustainable development, and industrial competitiveness. Copper is the silent backbone of our modern lives; it keeps the lights on in homes and powers the smartphones in our pockets, while driving innovation in electric vehicles and renewable energy.”

The loan not only provides lower-cost capital but also helps Aurubis solidify its reputation as a frontrunner in implementing EU climate and circularity policies, a factor increasingly vital to investors and customers.

2.2. Competitive Pressure and Soaring Demand

Notably, other cable manufacturers, including long-time Aurubis customers like Nexans, are also boosting their investment in European copper recycling capacity. This confirms that the demand for copper and secondary materials is rapidly increasing. Aurubis’s collaboration (or competition) with partners like Nexans is evidence of a transforming market where control over the supply of recycled raw materials is key to maintaining a competitive edge. Smelters are working hard to capture value from the increasing volume of e-scrap, turning waste into a valuable resource.

3. Strategic Analysis: Opportunities and Risks

The recent announcements point to a clear growth trajectory for Aurubis, but also come with inherent risks common in the smelting industry.

3.1. Opportunities for Growth and Diversification

• Geographical Diversification: The US plant offers geographical diversification, hedging Aurubis against Europe-only exposure. The US market presents the potential for access to an abundant and stable scrap supply.
• Financial and Policy Support: The EIB loan reduces the cost of capital for modernization and recycling projects, while aligning the company with EU climate and circularity policies.
• Stable Demand: Collaboration with major cable manufacturers like Nexans opens up stable demand channels, which is particularly important amid fluctuating global copper prices.

3.2. Challenges and Potential Risks

This strategy is not without risks. Building and operating smelters are capital-intensive activities, and profitability depends significantly on the global copper market and the reliability of the raw material feedstock supply.

• Competition and Regulation: The Georgia facility, while strategically located, will have to compete with established US recyclers and navigate complex permitting and environmental oversight.
• European Energy Costs: In Europe, rising energy costs could erode margins. Concurrently, political pressure to accelerate decarbonization may force Aurubis into further costly upgrades to reduce emissions.
• Market Volatility: Although long-term demand is secure, copper prices remain a major variable. Any global economic downturn could temporarily reduce metal demand and impact profitability.

4. The Importance of Metals in the Global Transition

Despite the risks, Aurubis is operating in an environment with numerous positive drivers. Both the low-carbon transition and the digital economy rely on critical metals such as copper, nickel, and tin.

• Copper and Electrification: Copper is an irreplaceable material in the production of electric vehicles (EVs), batteries, wind turbines, solar panels, and smart grid infrastructure. Copper demand is forecasted to increase exponentially in the coming decades.
• Government and Investor Support: Governments are incentivizing domestic processing, investors are financing it, and downstream manufacturers are demanding higher recycled content in their products to meet emissions and sustainability targets.

Aurubis’s latest moves clearly illustrate this shift, showing how the world’s largest smelters are looking more closely than ever at e-scrap as a critical and indispensable raw material source. By controlling the value chain from urban mining to refined copper production, Aurubis is building a resilient, sustainable business model ready for the future of the global circular economy.

Aurubis’s parallel investment strategy in the US and EU is not merely a conventional market expansion plan. It is a profound strategic positioning aimed at securing the supply of critical metals in the age of energy transition, reinforcing technological leadership in recycling, and mitigating geopolitical risks by diversifying operations across two major continents. The German group is demonstrating its role as a trendsetter in the global non-ferrous metals industry, where value no longer lies solely in mining but in the ability to turn waste into resources.

According to resource-recycling and collected from the internet.