Smarter Mills: The Analytics Shift in Auto Aluminum

Suppliers trial analytics to cut scrap and stabilise output as EV demand lifts pressure on costs

24 Dec 2025

A gradual shift is taking place inside North American automotive plants as suppliers turn to data analytics to improve aluminium manufacturing, seeking tighter cost control and more stable output amid rising demand from electric vehicle programmes.

Automakers’ push for lighter vehicles and thinner margins has drawn attention to longstanding weaknesses in aluminium production. Although the metal is central to vehicle lightweighting, manufacturers have struggled with uneven yields, scrap losses and volatile production schedules. These inefficiencies increase costs and complicate delivery commitments to carmakers.

In response, some suppliers are experimenting with analytics platforms such as DVISION’s Ex-Opti Engine, which aim to reduce variability by analysing production data already generated on factory floors. Rather than investing only in new machinery or materials, companies are attempting to extract greater value from existing systems.

The objective is to identify patterns linked to scrap rates, downtime and process instability, and to convert those findings into clearer operational decisions. Adoption, however, remains uneven. While a small number of manufacturers are running pilots in selected production lines, others are still addressing more basic challenges, including data standardisation, system integration and workforce training.

“This is about making better decisions faster,” said a manufacturing analyst familiar with digital transformation efforts in automotive plants. “Most suppliers have data. The challenge has been connecting it meaningfully to cost, quality, and performance outcomes.”

The timing reflects broader industry pressures. Electric vehicle programmes are increasing demand for aluminium in battery enclosures, structural parts and safety systems. At the same time, carmakers are pressing suppliers to deliver consistent quality at lower prices. Even modest improvements in yield stability or scrap reduction can help offset margin pressure without requiring major capital spending.

More predictable output could also reduce the need for large inventory buffers and improve delivery reliability, factors that weigh heavily in sourcing decisions. For suppliers competing on long-term contracts, operational consistency is becoming an important differentiator.

Tools such as Ex-Opti remain at an early stage of deployment. Yet their use signals a wider shift in focus, from simply expanding aluminium use to improving how it is produced. As the metal’s role in future vehicle platforms grows, manufacturers are likely to place greater emphasis on data-driven efficiency gains.