Aluminum production involves three major steps. First the open-pit mining of bauxite, AlOH3, an ore rich in aluminum oxide. Most bauxite mines are located in the Caribbean, Australia, and Africa.

The second step is the refining of bauxite into alumina, Al2O3, via the Bayer Process. The Bayer Process incorporates four stages: digestion, clarification, precipitation, and calcination. Four tons of bauxite is required to produce two tons of alumina.

Alumina is then smelted into aluminum via the Hall-Heroult Process. This is an energy intensive procedure requiring roughly 13 kilowatt-hours of electricity to produce one kilogram of aluminum. As a result most smelters are located near captive power sources such as hydro-electric dams, natural gas or coal fired power plants.

The Hall-Heroult Process begins by dissolving alumina in reduction cells filled with a chemical solution. An electrical current is passed through the solution depositing molten aluminum at the bottom of the cell. The molten aluminum is siphoned from the cells and either cast into ingots or alloyed with other metals.

Primary aluminum of at least 99.7% purity in the form of ingots, T-bars, or sows is traded over global metals exchanges such as the LME, COMEX, and SHFE.

Applications
Primary aluminum is fabricated into a variety of different products (rolled products, extrusions) used across a variety of sectors. The three sectors that account for 75% of aluminum consumption are transport, packaging, and construction.

Demand for aluminum by the transport sector has risen in line with the growing emphasis on fuel efficiency thanks to its light weight. As a result, the aluminum content of autos, airliners and ships is growing sharply.

Aluminum beverage cans account for most of the demand by the packaging sector. Used beverage cans are a significant source of scrap aluminum. Producing primary aluminum from scrap requires only 5% of the energy needed to produce it from bauxite.

The construction industry depends on aluminum for siding, windows, and doors.