Novelis and Ball Corporation Sign Long-Term Aluminum Supply Agreement

Novelis and Ball Corporation Sign Long-Term Aluminum Supply Agreement

Novelis Inc., a premier provider of sustainable aluminum solutions, announced an anchor customer agreement with North American aluminium beverage can firm Ball Corporation. The new contract will have Ball’s North American can-making plants use Novelis aluminium sheet.

This recent agreement, along with other engagements, has allowed Novelis to allocate the entire beverage can production capacity of its forthcoming plant in Bay Minette, Ala. Emphasizing the robust market demand, this facility, set for commissioning by 2025, will be the inaugural fully integrated aluminum manufacturing establishment in the U.S. since the last four decades. The plant projects a starting output of 600 thousand metric tons of final products, targeting primarily the North American beverage can and automotive sectors.

Steve Fisher, the CEO of Novelis, commented on the early contract finalization in a press release.

“Securing contracts for beverage can production capacity at Bay Minette two years before the plant is expected to be completed demonstrates our customers’ confidence in our ability to plan, construct and operate our new plant in Alabama. We’re proud to continue our partnership with Ball in such a meaningful way and look forward to bringing our new plant online in the next couple of years.”

Ron Lewis, Ball Corporation’s senior vice president and COO, emphasized Novelis’s key role in advancing Ball’s sustainability endeavors and realizing the vision of a circular aluminum beverage packaging economy.

“Novelis is a critical partner in helping Ball reach our carbon footprint reduction goals and achieving full circularity for aluminum beverage packaging. Our longstanding relationship with Novelis continues to generate significant benefits for our companies, our customers, and the long-term health of our planet.”

The partnership between the firms span several decades and shares a vision for innovation and eco-friendly practices. For instance, as of 2022, the Ball Aluminum Cup, fashioned solely from Novelis-provided aluminum, boasts 90% recycled content.

Greg Schlicht, Novelis’s senior vice president of global beverage packaging, reflected on the mutual commitment to a circular economy.

“Novelis and Ball are like-minded companies committed to creating a truly circular economy for aluminum beverage packaging. Our long-term collaboration has brought innovative products to market and set a new standard for sustainability. We are excited to continue this partnership and to meet growing demand for environmentally friendly beverage packaging.”

Forecasting trends, Novelis predicts a 3% compounded annual growth in the global aluminum beverage can sheet demand from 2022 to 2031. The surge in demand will be a shift in consumer preferences towards sustainable products, a wider range of beverages now being canned, and the variety in can sizes.