# Fundamentals [[Why Aluminium]] [[Aluminium 101]] by the Visual Capitalist [[Aluminium Uses]] [[Aluminium Production]] - Primary vs Secondary Production [[Aluminium Market Mechanics]] - Price, Supply and Demand Dynamics [[Investments for Aluminium Exposure]] - Putting our money where our mouth is > Aluminium is light weight, durable and infinitely recyclable ---- #### Aluminium Facts & Notes - **Does not occur in pure form ** - **Bauxite to aluminum reduction factors** - For every 4 pounds of bauxite, 2 pounds of alumina can be produced. - From every 2 pounds of alumina, 1 pound of aluminum is produced. - 4 Bauxite --> 2 Alumina --> 1 Aluminium - **Energy conservation ** - 50% less energy consumption than 50 years ago - 10% in the past 20 years in terms of energy usage requirements - In the past 2 decades, energy efficiency of the Hall–Héroult process has improved by 20% > How do we improve the energy efficiency of the Hall–Héroult process - **Aluminium does not rust** - It reacts with Oxygen in the air to form a thin layer of Aluminium Oxide that protects it from further oxidation and makes it corrosion resistant ##### Cost impact of [[Electricity Price Decline]] on primary production - In North America, about 70% of electricity consumed in smelting facilities comes from hydroelectric sources > Strong link between Hydroelectic and Primary Aluminium Production related sustainable opportunities becauase of geographical conveniencies ##### Sustainable energy for primary production - Aluminum production consumes approximately 5% of electricity generated in the United States - Electric power represents about 20% to 40% of the cost of producing aluminum --- Sources: 1. [Aluminum.org](https://www.aluminum.org/industries/production/primary-production) 2. [Reza Beheshti](https://www.researchgate.net/figure/Global-metal-production-as-a-proportional-of-all-metals-produced-9_fig1_311178751) 3. [Mining Weekly](https://www.miningweekly.com/article/aluminium-demand-growth-will-soon-outpace-production-growth-2020-10-30) #kp