Aluminum manufacturer LCA-UACJ's environment-related insights

UACJ at the core of aluminum circularity.
We have reached a turning point where we need to seriously re-think the way we use
resources to create a carbon neutral society as part of efforts to address the pressing issue of climate change.

While aluminum is just one of many resources that are available to us, its lightweight,
strength, and corrosion resistant characteristics mean aluminum is used extensively all
around us, enriching our lives in all manner of ways. Despite this, aluminum has earned
the odd title of "congealed electricity" because its production (smelting*) requires vast
amounts of electricity, a factor that has long been of significant environmental concern.

Yet aluminum has the intrinsic property of being able to be recycled indefinitely. Aluminum is a material with the potential to significantly cut back environmental impact
and GHG* emissions by using renewable energy * sources for production and developing
associated recycling systems and technology. There have been increasing moves in recent years to focus on methods of reducing the impact that aluminum itself has on theenvironment. Aluminum has characteristics like being light in weight and good thermal
conductivity, making it a material that can lower the environmental impact of products
while they are actually being used.

Here, aluminum manufacturer UACJ will showcase how it can help develop a sustainable recycling-oriented society and less environmentally damaging world using aluminum.

See P18 for an explanation of terms marked with *.

3

Contents

Vision of the future with sustainable aluminum

4

01. The benefits of aluminum to society

P. 6

02. Aluminum alloys developed for diverse characteristics

P. 7

03. Sustainability of aluminum resources

P. 8

04. The aluminum lifecycle

P. 9

05. Energy consumption and environmental impact of the aluminum industry

P.10

06. Environmental impact of virgin aluminum ingots

P.11

07. Options for reducing environmental impact of aluminum

P.12

08. Aluminum recycling framework

P.13

09. The future of the aluminum industry

P.14

10. Aluminum industry helping to reduce GHG emissions

P.15

11. Future challenges and UACJ's environmental capabilities

P.16

A lighter society co-created with aluminum

P.17

Editor's postscript

P.18

Glossary

P.19

Vision of the future with sustainable aluminum5

01

The benefits of aluminum to society

Aluminum is used throughout a broad range of applications—vehicles, buildings, beverage cans,and much more. The weight savings and recycling characteristics of aluminum will be harnessedmoving forward in order to meet the environmental needs of the future.

Demand (thousands of tons)

Transportationequipment

1,728
719

Buildings
Food andBeverage Packaging

444

Metal products

323

General machineryand equipment

129

Electric machineryand equipment

112

Source: Japan Aluminium Association (2019)

Diverse applications ofaluminum

Aluminum—a material
full of potential

6

Aluminum has a relatively brief history with only around 130 years of industrial use, but quickly gainedwidespread popularity for its light weight, strength, and corrosion resistance. It is estimated that morethan 75% of aluminum is still in use by recycling ever since.
Lightweight properties are essential for transportation equipment, and it is for this reason that aluminum is used extensively throughout vehicles, railroads, aircraft, and ships. Aluminum is also widely used
as an external cladding material for buildings due to its excellent corrosion resistance, design aspects
and processability. And in the food and beverage packaging sector, aluminum is used for beverage cansdue to its lighter weight and superior heat conductivity, as well as a range of other packaging and containers for its ease of adhesion with other materials and being harmless to the human body.
The weight savings and recycling characteristics of aluminum will also be harnessed in order to meetthe environmental needs of the future. The properties of aluminum make it ideally suited to recycling,
as it can be recycled indefinitely. It is corrosive-resistant and has a low melting point, which means afteruse, products can be melted down for recycling. The development of cutting-edge technologies mean
aluminum can increasingly be used in brand new sectors and applications, with weight savings anticipated in a broad range of products.

Aluminum lightens the world

02

Aluminum alloys developed for diverse
characteristics

The addition of alloying elements to form aluminum alloys gives aluminum a range of excellent
characteristics as a material. When aluminum products are recirculated for use, mixtures of different
types of scrap make it difficult to develop alloys with superior characteristics. In light of this, themethods used for recycling need to be re-examined based on our knowledge of alloys.

Aluminum
Alloy Series

Main Alloying
Elements

FeaturesMain Applications

1000 series–

Low strength, but excellent processability,
electrical conductivity and corrosion resistanceAluminum foil, household appliances,electrical equipment

2000 series

Copper,magnesium

High strength and used as construction material,
but less corrosion resistanceCutting parts, aircraft material, etc.

3000 series

Manganese,magnesium

Good balance between strength and formability

Aluminum cans, piping material,construction material, etc.

4000 series

SiliconExcellent wear resistance

Pistons, etc.

5000 series

Magnesium

Excellent strength

Construction material, rail stock, ships, etc.

6000 series

Magnesium,
silicon

Most common construction material withsuperb strength and corrosion resistanceAluminum sashes,transportation equipment, etc.

7000 series

Zinc, copper,
magnesium

Highest strength of all aluminum alloys,
but poor corrosion resistance

Welded construction material,
aircraft material, sporting products, etc.

Characteristics of aluminum alloys

Recirculation of aluminum alloys and its restrictions

The addition of alloying elements to form aluminum alloys gives aluminum features like strength, electrical conductivity, processability, and corrosion resistance. These variations in alloys have made aluminum suitable for numerous requirements throughout society, and thus have been used for an extensive
range of applications.
An example that highlights this is the high-strength aluminum alloy used as aircraft construction material. Commonly referred to as a type of "duralumin," it is a series 2000 aluminum alloy made by adding
copper and magnesium to an aluminum base. Various other aluminum alloys can also be made throughdifferent combinations of alloying elements, resulting in alloys that are excellent at cutting, or thosethat provide superior balance between strength and corrosion resistance.
When aluminum products are recirculated for use, the combination of different series of aluminum alloy results in aluminum scrap containing various alloying elements mixed together. This often makes it
difficult to reproduce or refine the material to meet required characteristics. For this reason, recycling isbased on recirculation of each type of application, such as turning scrap aluminum cans into aluminum
beverage cans.

Aluminum lightens the world7

03

Sustainability of aluminum resources

There are vast reserves of aluminum available and mining them is easy, making it a base metal* with
one of the highest production volumes. In fact, aluminum has ample reserves to meet demand,
which means it is a material suited to sustainable societies.

Production volume of base metal ingots

Sustainability of base metals

Ingot production volume (* millions of tons)

Reserves Ratio against current demand* (year)

1,800
Most abundant metallic
element in the Earth's
crust Easily mined

56

81

44

21

20

Fe

Al

Cu

Zn

Pb

65
25

Fe

Al

Cu

13

12

Zn

Pb

Source: USGS2021, JGMEC2020 *Figures from 2020

Aluminum—a type ofbase metal

Aluminum resources
have excellent sustainability

Source: USGS2021*Amount of ore production in 2020

Between 55 to 75 billion tons of bauxite, the main source of aluminum, is said to be available globally—
the second highest figure of all metal ores. Of this figure, there are reserves (amount of resources thatmeet minimum physical and chemical levels, and that are economically viable to extract) of around 30
billion tons, also the second highest figure of metal ores. Aluminum is the third most abundant element(8%) in the Earth's crust (Clarke number) after oxygen (50%) and silicon (26%), and is easily mined because it is almost always found near the surface of the terrain.
As a base metal, large volumes of aluminum ingots are produced and used for a broad range of applications.
As a base metal, aluminum has the second largest amount of resources after iron, but it has the highest
volume of reserves in relation to demand. Other metals are lacking in sufficient reserves to meet theamount of future demand, but there are sufficient known reserves of bauxite to meet demand throughto 2050. While efforts need to be made to reduce large-scale consumption of resources and shift torecirculation-based models over the long term given the resource constraints, it is important to ensure
ample time to develop the systems required to achieve this. Aluminum is considered superior in thisregard, and is a material with excellent sustainability.

See P18 for an explanation of terms marked with *.

8

Aluminum lightens the world

04

The aluminum lifecycle

With its advanced casting and processing technology, UACJ plays a crucial role in taking imported
virgin aluminum ingots and scrap or recycled secondary alloys (alloys mainly used for casting) andmachining them into sheets and other cast products.

Virgin aluminumproduction

Meltingand casting

Virgin aluminum is
produced from bauxite
using electricity

Virgin aluminum is melted
down and has various
elements added to it for
casting primary alloys

Processing
Rolling, extruding, forging,casting, and other means ofprocessing are used to formmaterials for products

Product
manufacturing
and useMachined to end products
like beverage cans andautomotive parts

Collection
and sorting
Used products arecollected and sorted, thenrecovered as scrap

Recycling
Scrap is melted down for
casting secondary alloys

End products

BauxiteVirginaluminumingotsVirgin aluminum

Melting and casting

Rolling, extruding,forging, casting

Collection and sorting

Melting and casting

Scrap

Secondary alloys

Automotive parts

Primary alloy

Aluminum material

Beverage cans

100% imported
by UACJ
Recycled aluminum

Steps for recycling aluminum

Various processes are required in order to use aluminum as products. The first step is to process theprinciple ore bauxite into alumina (aluminum oxide) and then extract the pure aluminum, before smelting it into virgin aluminum. Bauxite is mainly mined in countries like Australia and China. Alumina is dissolved using a process called electrolytic smelting, which requires an immense amount of electricity—
this process is not performed in Japan where electricity costs are too high. In light of this, 100% of virgin
aluminum is imported. Alloying elements are added to the pure virgin aluminum to produce primary
alloys (mainly used for expanded material), and it is here that UACJ's expertise and technologies for
producing aluminum material play a role in processing these materials. Magnesium and other alloying
elements are added to molten virgin aluminum ingots and then cast to primary alloys (mainly used for
expanded material). These alloys are then processed using a broad range of methods like rolling, extruding, forging, and casting, to produce sheets and various other shapes of materials and parts. These
aluminum materials and parts are then supplied to automotive manufacturers and food and packaging
manufacturers, where they are converted to end products like the automotive parts and beverage cansavailable throughout the market. End of life products are collected and sorted, then recovered as scrap.
This is then melted and cast into secondary alloys (mainly used for casting), for use in another aluminum product. Production of secondary alloys does not require electrolytic smelting, and thus intense
efforts are made toward recycling, even in Japan. In some cases, offcuts left over when producing end
products and some types of community scrap are recycled directly to aluminum material without being
turned into a secondary alloy.

Aluminum lightens the world9

Energy consumption and environmental
impact of the aluminum industry

05

While virgin aluminum ingot generates relatively high GHG emissions, the majority of this is generated during the electrolytic smelting process, which means the environmental impact can be reduced
through the use of renewable energy. In contrast, recycled aluminum ingots do not require smelting,and thus have a much lower environmental impact.
Amount of GHG emissions by production
process of virgin aluminum ingots
Miningand smelting

Electricity
Other energy

Electrolytic
smelting

Casting

Virginaluminum ingots

82%

1%

100 %

1%

0%

Collection

Melting
Recycled
and adjustment aluminum ingot

Pulverizing

Virginaluminumingotskg・CO2-eq/Al・kg

100%
66%

64%

Recycled
aluminum
ingot

17%
15%

18%
34%

2%

Virgin aluminum ingot
major environmental
impact is electricity

Recycled aluminum
ingots have a low environmental impact

3%

kg・CO2-eq/Al・kg

Source: International Aluminum Institute

10

Recycled aluminum ingot production
process and amount of GHG emissions

Source: Japan Aluminium Association

The environmental impact that aluminum poses differs to that of other resources.
The electrolytic smelting process requires immense amounts of electricity, and as a result virgin aluminum ingots have a relatively high environmental impact. The amount of GHG emissions generated fromelectricity used during the production of virgin aluminum ingots accounts for around 70% of the total
process for the production of aluminum as a metal. It is because of this that aluminum is often referred
to as “congealed electricity,” but as electricity generated by renewable energy sources are the amountof GHG emissions can be reduced significantly.
In fact, the electrolytic smelting process is not required for the production of recycled aluminum ingots(aluminum material made from used products or re-melting processing waste). Aluminum has a low
melting point, and as such melting during the recycling process only requires a small amount of energy.
The amount of GHG emissions required for recycled aluminum ingots is just 3% of that of virgin aluminum ingots.
In essence, aluminum is an excellent material in that once it has been smelted, only a small amount ofenergy is required to turn them into ingots, even if it has already been made into products. By increasing the amount of recycled aluminum ingot we use, the amount of GHG emissions throughout the entire aluminum industry can be reduced.

Aluminum lightens the world

Environmental impact of virgin aluminum ingots

06

Not all "virgin aluminum ingots" have the same environmental impact—this differs depending on the
power source used during production. UACJ procures materials from sources globally in environmentallyconscious manner to suit customer requirements.

Major exporters to Japan*1 and ingot smelting power source makeup by country*2
Nuclear power

1%

Hydroelectricity

75%

Coal

25%

RussiaGas

100%

Hydroelectricity

220,000 t
120,000 t

100,000 t

UAE

Hydroelectricity 280,000 t

9%Australia

140,000 t

Hydroelectricity

100%

100%
BrazilNew ZealandCoal*1: Figures from 2020
*2: Estimated based on figures from 201091%

Source: Created by UACJ from Japan Aluminium Association and Ministry of Finance trade statistics

Environmental impact
differs with source

Procurement factoringin environmental impact

Aluminum is not smelted using electrolysis processes in Japan, and as such Japan imports 100% of its
virgin aluminum ingots. The major exporters to Japan include Australia, New Zealand, Brazil, and theUnited Arab Emirates (UAE).
Virgin aluminum ingots do have a relatively high environmental impact, but as outlined earlier, themajority of that is attributed to electricity. The actual environmental impact of virgin aluminum ingots
depends on just how much electricity is suppled from renewable energy sources during electrolysis
processes. This essentially means that despite the same type of virgin aluminum ingots being imported,
their environmental impact differs widely depending on which country and which smelter the ingots
were imported from.
More specifically, virgin aluminum ingots imported from Australia and the United Arab Emirates have ahigh environmental impact as electrolytic smelting in those countries use coal-fired or gas-fired thermal
power. Virgin aluminum ingots from New Zealand and Brazil, in contrast, have a lower environmental
impact as hydroelectricity is mainly used there.
With this in mind, procurement of virgin aluminum ingots needs to factor in aspects other than costalone.

Aluminum lightens the world11

Options for reducing environmental
impact of aluminum

07

When examining how to reduce the environmental impact of aluminum overall, reducing the impact that virgin aluminum ingot production has is not the only option available—another effective
method is increasing the recycling rate.

Aluminum recycling rate and average environmental impact** (environmental impact of virgin aluminum ingots) x (1 - (recycling rate)) + (environmental impact of recycled aluminum ingots) x (recycling rate)

kg・CO2/Al・kg

Recycling rateof all aluminum

Environmental impact of aluminum ingots

10

48%

Recycling rateof aluminum cans

Environmental impactof virgin aluminum ingots*1

98(2) Reduce environmental impactof virgin aluminum ingots

76(1) Increase recycling rate

5
4
3
2
1
0
0%

Environmental impact ofrecycled aluminum ingots*2

10%

20%

30%

40%

50%

60%

70%

Recycling rate
Source: Created by UACJ from Japan Aluminium Association "Aluminium VISION 2050"

Limited amount ofvirgin aluminum ingots
produced with renewable energy

Reducing environmental impact with recycling

12

90%

80%

90%

100%
*1: Environmental impact when producing
virgin aluminum ingots*2: Environmental impact when producing
recycled aluminum ingots

As outlined above, virgin aluminum ingots have a high environmental impact due to the immense electricity consumption required for electrolytic smelting. Yet ingots with a lower environmental impact canalso be selected, like more advanced aluminum produced using hydroelectricity. Unfortunately, virgin
aluminum ingots produced with clean energy sources like these only account for around 30% of global
production volume, and does not cover all the required demand

The key to overcoming this challenge will be the use of recycled aluminum ingots with low environmental impact—or in other words, increasing the recycling rate. The environmental impact of recycled aluminum ingots is about 3% of that of virgin aluminum ingots, and using more recycled aluminum ingots canhelp to reduce the average environmental impact when considering the overall amount of aluminum.
Around 48% of the total amount is already being recycled, meaning the average environmental impact
is around half that of using just virgin aluminum ingots. The recycling rate of aluminum cans is alreadyat 90%, meaning almost all cans are being turned into recycled aluminum ingots with an extremely low
environmental impact.
The key challenge that lies ahead will be to further increase the overall recycling rate of aluminum, andin turn reduce the amount of virgin aluminum ingots used to achieve a lower average environmental impact.

Aluminum lightens the world

08

Aluminum recycling framework

Systems are already in place throughout society for collecting aluminum, and as only a small amountof energy is required to melt down aluminum, high-quality recycling is possible at a low cost—thisboosts the value of scrap. This is what drives the recirculation of aluminum throughout society.

Start of sorting and collection in linewith the Law for Recycling Containers
and Packaging

Low melting point means
low amount of energy needed for
melting

Development of industry-wide collection
network over a span of 50 years

Excellent technologies for paint removal
and separation of body and ends

Municipalities

Return as highvalue-added products withclosed-loop recycling thatretains quality

Old Scrap

Households
Stores, organizations

Businesses

Collection
businesses
Recyclingbusinesses

BottlersCanmanufacturers

80%
Secondary alloy
manufacturers&
processing
manufacturers

Recycled
aluminumingot

As aluminum cansdue to high purity

Closed-loop
recycling

For castingor die casting20%

Downcycling

New Scrap

In-house

Scrap

Source: Created by UACJ from Japan Aluminium Association "Aluminium Can Recycling"

Aluminum recycling
framework

Types of scrap

The key benefits of recycling aluminum is that scrap retains a high value, and that frameworks are inplace to ensure it is recirculated instead of going to waste.
Society already has collection systems developed for aluminum, and combined with the low melting
point and superb removal and separation technologies that are available, this makes high-quality recycling achievable for a low cost. This results in a positive cycle, where scrap retains a high value and people tend to collect it as second nature.
Look at aluminum cans to illustrate this in action. Highly effective collection systems have been developed by municipalities, and technologies for removing paint and various sorting methods mean
high-quality recycled material can be produced for a low cost.
There are three main types of scrap available: In-house Scrap generated by manufacturers during the
production of alloy and machining; New Scrap generated by product manufacturers during the production process; and Old Scrap arising from products disposed of by consumers.
Of these, Old Scrap is the most difficult to recycle due to the broad range of types available and the large
variations in quality. Beverage cans are one sector of the aluminum industry that has achieved a very
high recycling rate. Applying models of success like these to other sectors will help to boost the value ofscrap and further increase the use of recycled aluminum ingots.

Aluminum lightens the world

13

09

The future of the aluminum industry

UACJ is not only focusing on creating value for society through materials by reducing their environmental impact, but also plans to take on a central role for expanding aluminum recycling.
In essence, UACJ will help achieve a sustainable society and deliver environmental value throughaluminum with recirculating supply chains built upon forward and reverse material flows.
Recirculating systems created with aluminum
Aluminum processed goods

Forwardlogistics side

Sustainable materials

Product
manufacturing

BauxiteElectrolytic
smeltingGreen Aluminum
ingotsIn-house Scrap“Eternally Recyclable”

New Scrap

Reverselogistics side

Renewable energy

Aluminum used as recirculation

Efforts for procuring green
aluminum ingot

Aluminum production
with renewable energy

Reduce environmental
impact through the useof aluminum

Collecting and recycling
all aluminum

14

Old Scrap

Collecting and recycling aluminum

Product use
Aluminum playing a role toreduce environmental impact

Electrolytic smelting and aluminum production using renewable energy is one key area of the upstream
sector. Choosing aluminum made using carbon-free renewable energy sources like hydroelectricity
represents significant value in terms of reducing the environmental impact from a materials perspective. Looking ahead, catering to societal demand will be needed by expanding availability of eco-virgin
aluminum ingots to suit various applications and the way aluminum products are used.

A key factor with forward logistics is the way aluminum contributes to the environment. An exampleof this is reducing the amount of CO2 emissions by making vehicles lighter in weight. In fact, there aremany areas where the characteristics of aluminum contribute directly to reducing environmental impact when products are used. The development and supply of new optimal materials in sectors where
aluminum does not yet play a role will also lead to a proportional increase in reduced environmental
impact.

The most crucial area is reverse logistics and the recycling of aluminum scrap. Collecting, sorting andrecycling scrap into recycled aluminum ingots with a low environmental impact helps to feed backinto the recycling loop. Aluminum retains its characteristics even after it is recycled. Working with thisproperty and using smelted aluminum over and over helps to reduce the environmental impact of aluminum.

Aluminum lightens the world

10

Aluminum industry helping to reduce
GHG emissions

Achieving the future goals of the aluminum industry is directly related to reducing Scope 3 emissions and improving LCI from the perspective of companies using aluminum.

Areas where the aluminum industry contributes to supply chain emissions (Scope 3) ofcompanies using aluminum
Upstream

Companies Using Aluminum

Downstream

Scope 3 - Upstream Emissions -Scope 1 - Direct Emissions -Scope 3 - Downstream Emissions -Production of raw materials
Aluminum production
using renewable energy

Use of fuelBauxiteUse of products
Lower environmental
impact by harnessing
aluminum

Virginaluminum ingots
90% of CO2
emissions during
production ofaluminum material*

Environmental-friendly
production based on aluminum
recycling and processing
performances.

Processing
Approx. 10% of CO2
emissions during
production ofaluminum material*

Scope 2 - Indirect Emissions -Disposal and recycling of products

Use of electricity

Collection andrecycling ofaluminum

Flat-rolled productsCast products

For flat-rolled products

Source: Created by UACJ from Ministry of the Environment "Approach to Calculating Emissions Throughout the Supply Chain"

Helping reduce environmental impact of theentire supply chain

Achieving the future goals of the aluminum industry set out above also has a significant implication forcompanies using aluminum.
With growing demand to slash GHG emissions in recent years, there is an increasing need to find ways toreduce GHG emissions throughout the entire supply chain, in addition to focusing on in-house emissions.
Companies need to have a thorough understanding of the amount of emissions throughout their entire
supply chain—from direct emissions under Scope 1, indirect emissions arising from the use of electricity,heat and steam supplied by other companies under Scope 2, and emissions from other companies related to society and business activities under Scope 3—and make an effort to reduce these.
Achieving the future goals of the aluminum industry outlined above is directly related to more advanced
supply chain management and reducing Scope 3 emissions at companies using aluminum. Helping to
reduce the environmental impact of the entire supply chain by recirculating green aluminum is exactly
the type of future the aluminum industry is setting out to achieve.

Aluminum lightens the world

15

11

Future challenges and UACJ's environmental capabilities

To achieve this future goal, UACJ is aiming to become the “core of circulation” by incorporating
its expertise with alloy and process development capabilities into the recycling system, as well asworking with companies throughout the value chain to address various latent issues.

Reducing the environmental impact ofvirgin aluminum calls for ingot
smelting using renewable energy
sources to become standard.
While UACJ does not engage in thesmelting process,insert "UACJ" or "we" before
will develop asystem capable of procuring
environmentally responsible ingots inline with demand.

UACJ will develop optimum processes
for recycling by harnessing theknow-how it has accumulated overmany years.

Design, processing and productionneeds to be optimized by fine-tuning
each step to expand the applicationsof aluminum and reach its fullpotential.
UACJ understands the needs of themarket, and pushes for the full
utilization of aluminum by proposing
optimal methods through allprocesses, from materials to
production.

The environmental value needs to be
showcased to end consumers as a newform of value.
UACJ will work with productmanufacturers to raise awareness andbranding based on its UACJ SMART®,
to come up with new types ofaluminum products.

Renewable energy smelting
and ingot procurement

Alloy and processdevelopment

Full utilization of aluminum

Awareness ofenvironmental value

Smelting companies
Energy companies

Material manufacturers
UACJ

Parts and productmanufacturers

End consumers

Renewable energy
procurement

Upgrade recycling

Sorting by alloy typeCollection directly as scrap

Sorting by alloy type is required torecycle good-quality aluminum

Recycling scrap directly to newmaterial can reduce the environmental
impact during the recycling process.

Procuring hydroelectricity, solar
power, wind power and otherrenewable energy sources is essential
for ingot smelting, and the increasing
global shift to renewable energy is
anticipated to bring changes to themarket for sourcing electricity.
UACJ will also be focusing efforts on
making improvements that do not
rely on renewable energy, such as
scrap recycling.

“The core of circulation”
by harnessing alloy andprocess development
capabilities

Working with partnercompanies to address
challenges

16

Identical alloy materials can havedifferent properties depending on
the processes used.
Development of alloys andprocesses is required so that various
types of scrap can be fully utilized in
the same way as virgin aluminum.

If impurities can be removed fromcollected scrap, the material can beprocessed in the same way as virgin
aluminum ingot.
UACJ will be taking on the challenge ofdeveloping and applying newtechnologies like smelting with ionicliquids.

UACJ will coordinate efforts withcustomers for the further expansionof systems for collecting, sorting, andprocessing scrap.

UACJ will raise its processing capacityof scrap material through integrated
recycling systems for aluminum cans.

There are a multitude of issues remaining throughout the value chain (VC) when it comes to achieving
the aforementioned future goal. One of these that UACJ is focusing on is the development of alloys andrelated processes.
Recycling is one of the most important factors for this future vision, and impurities (Fe, Si) end up being
introduced each time aluminum is recycled. Expanding the scope of recirculation and recycling calls
for the production of high-standard materials, even if there is a greater amount of impurities like these.
Alloy and process development is the key to overcoming this challenge.
One example that highlights this is that different processes can increase the strength of an aluminumalloy almost 10-fold, even if identical elements are used for alloying. UACJ has long fine-tuned its development of alloys and processes through its 125-year history of rolling aluminum. While it is easy toimitate alloying elements, know-how is required for the associated processes, and this is one field thatUACJ excels at. Applying this expertise with alloy and process development capabilities into the recycling system will allow UACJ to transform various types of scrap into value—in essence becoming thevery core of recycling.
Yet by itself, UACJ is unable to address the difficult challenges that are present in areas outside its alloyand process development capabilities. In those such areas, UACJ will work with parts manufacturers,
product manufacturers and other customers, and upstream players such as smelting companies to focus on resolving the underlying challenges.

Aluminum lightens the world

A lighter society co-created with aluminum
UACJ is aiming to work with a diverse range of companies toovercome challenges by recirculating aluminum throughout society andcreating a more environmentally conscious future.

While aluminum is used in a broad range of sectors today, countless challenges need to be overcome in order to extract the full potential that aluminum promises. To achieve eternally recyclable aluminum, efforts need to be coordinated with all facets of society
and companies using aluminum to focus on collecting all forms of scrap without any waste.
Procurement of environmentally friendly virgin aluminum also requires coordination with smelting companies and energy companies to develop a framework for properly assessing and purchasing aluminum produced using renewable energy.
Challenges that UACJ alone is unable to address will be overcome by coordinating efforts with an extensive range of companies andpartners. Aluminum will be updated as an "eco-material" through co-creation with partner companies to help achieve a lighter society by using aluminum.

Aluminum lightens the world17

Editor's postscript

Thank you for reading through this booklet. The editing team has taken great pleasure in presenting the future potential of aluminum through the initiatives outlined here.
Studies have revealed that the level of CO2 in the Earth's atmosphere first began rising in the late 18th century. This matches the timing when humans began to rapidly expand their activities following the Industrial
Revolution. Today, the impact that human activities have on climate change is being scientifically proven.
As we increased our understanding of this mechanism, the international framework Kyoto Protocol was developed in 1997 and culminated with the Paris Agreement in 2015, where both developed countries and developing countries alike declared their intentions to tackle climate change. And now we may have reached aturning point that will change the very structure of industry.
Let us take a moment to reflect on the materials used by industry. The quality and performance standardsof materials are finalized and assured from the moment those materials are shipped from a factory. Therewas value in supplying higher quality material in greater quantities at a lower cost. Yet taking a closer lookat materials from the perspective of sustainable growth, the performance of those materials (which we referto as the quality, performance and all intrinsic value) cannot be guaranteed unless all aspects are taken into
account—processes from when it is mined from the Earth's surface to production of material, production
methods, use as an industrial material and industrial product, and how it is handled afterwards. It is thesechanges in industry that have an impact on materials. Aluminum is no exception—its widespread applications and eternally recyclable properties mean aluminum has inherent complexity equal to or greater thanthat of other materials.
This booklet represents the first step we are trying to take with our stakeholders to address such complex
challenges like these. During the editing stage we were grateful to receive assistance from Nomura ResearchInstitute, and we feel that this gave us the opportunity to view aluminum from a completely fresh perspective. Examining how materials are used and what happens to them afterwards is, in a way, the same as taking
a closer look at an uncertain future. Aluminum is used, collected, and turned into new products again. With
this, we are confident that this recycling system is a key factor for supporting a sustainable society. It goes
without saying that we still do not have a complete understanding of everything. Yet we embraced honesty
and foresight for gaining an understanding and showcasing the current state and potential of this material.
Finding a solution to one problem only leads to numerous new problems arising. After reading this, you too
may have come up with questions or requests related to aluminum. If so, raise the matter—any matter—with UACJ staff.
We live by the UACJ corporate philosophy of "Contribute to society by using raw materials to manufacture
products that enhance prosperity and sustainability." We believe it is worth addressing these challenges together with all our customers and stakeholders.

Editors: Kenji Nose, Ph. D., Shingo Iwamura, Ph. D.

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Glossary

Smelting
Extracting metals from the ores. Aluminum uses electricity for electrolytic smelting.

GHG
Abbreviation of greenhouse gases.

Base metal
Name of metals with large amounts of reserves and production.

Renewable energy
An energy source that can be used repeatedly without exhausting any resources, unlike fossil fuels with finite quantities.

LCA (Life Cycle Assessment)
A method for quantifying the environmental impact of each stage of a product or service's life (from extracting resources to manufacturing, use and disposal of products). The amount of resources and energy consumed during each processof a product or service's lifecycle (manufacturing, use and disposal), CO2 emissions, and other environmental impacts
quantified using LCA methods are called the Life Cycle Inventory (LCI).

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