One metal benefiting amid US-China trade tensions is aluminium, which saw multi-year highs in Q4 2025, according to the Department of Industry, Science and Resources (DISR) December 2025 Resources and Energy Quarterly.
In the final quarter of 2025, China was required to ease trade restrictions with the US as the country grappled with aluminium supply constraints, driving the spot price of the metal higher.
The London Metal Exchange (LME) noted a 7.3% increase for aluminium in Q4 2025, averaging a spot price of US$2,618 ($3,903) per tonne, according to the DISR report. Aluminium was averaging a spot price of US$2,618 in Q3 2025.
As of 13 January 2026, aluminium was priced at US$3,185 per tonne, as the metal continues to spike into the new year, as reported on the LME.
Reflecting on this increase, DISR forecasts the price of aluminium to increase by US$70 a tonne for 2025, US$150 for 2026, and US$110 for 2027, in comparison to the September Quarterly.
The global transition to clean energy is expected to further boost the demand for aluminium due to its significance in electric vehicles (EV), wind turbines, and solar panels.
As reported in Mining.com.au’s lithium review for the December quarter, Australia saw a 38% increase in EV sales in 2025, with a new record of 16.7% of new vehicles sold being electric in December alone.
Aluminium is heavily relied on in the transport industry, playing a key role in the manufacturing of cars, planes, trains, and ships, as well as the construction industry and packaging.
Common construction appliances include window frames, curtain walls, roofing, cladding, structural elements, and interior components.
The metal is a lighter alternative to steel for its low density suitable for outdoor applications due to its ability to naturally form a protective oxide layer to resist corrosion.
In 2024, Australia produced 1.58 million tonnes of aluminium, marking the country as the world’s seventh largest producer, according to the Australian Aluminium Council.
Australia currently has four aluminium smelters across the country, including Rio Tinto’s (ASX:RIO) Bell Bay in Tasmania and Boyne Island in Queensland.
Other refineries include Alcoa’s (ASX:AAI) Portland refinery operating in Victoria, and Tomago Aluminium’s New South Wales refinery.
Write to Maddison Elliott at Mining.com.au
Images: Stock
