Indiana-based Sortera Technologies raises $45 Million in Funding for Mixed Aluminum

Sortera Technologies, a startup using artificial intelligence and sensor systems to sort mixed aluminum scrap into specific alloys and based in Fort Wayne, Indiana, last week announced $45 million in new funding. The announcement also included plans to open a second processing facility in Lebanon, Tennessee.

The financing was led by accounts advised by T. Rowe Price Associates and VXI Capital, with participation from Yamaha Motor Ventures and Overlay Capital and equipment financing from Trinity Capital. Sortera said the money will support expansion of its domestic upcycling operations and help scale production of recycled aluminum alloys for customers in automotive, construction and aerospace markets.

Sortera launched a 200,000-square-foot flagship plant in Markle, Indiana, in early 2023. The company’s technology uses machine learning and multi-sensor sorting to separate mixed aluminum scrap into grade-specific outputs such as 380, 356 and 319 cast alloys and wrought grades including 3105. Those streams are intended to be direct replacements for imported primary aluminum or secondary alloys that have traditionally been downgraded or shipped overseas for reprocessing.

Michael Siemer, CEO of Sortera Technologies, said that demand from manufacturers, particularly automakers, helped drive the decision to open the plant in Tennessee, which they expect to be operational by summer 2026. "The robust investor confidence that powered this funding, coupled with the proven customer demand that necessitates our expansion into Tennessee, is a direct result of this success. This expansion allows us to significantly increase our capacity and establish a presence closer to many of our key customers” Sortera estimates the combined operations could raise annual production capacity to roughly 240 million pounds of recycled aluminum.

Sortera also pointed to potential environmental benefits, saying its process can cut energy use by about 95% compared with primary aluminum production and reduce associated carbon emissions. This is a claim consistent with industry findings, including from the International Aluminium Institute that recycling aluminum requires far less energy than producing it from ore, though exact savings depend on feedstock and process. The company also said that its software and data collection capabilities enable customer-specific alloy blends and traceability of end-of-life material streams.

The aluminum industry has faced challenges in sorting and reclaiming mixed scrap efficiently; much mixed scrap historically has fetched low prices or been exported for remelting. Advances in sensor-based sorting and AI like Sortera indicate a way to potentially increase domestic secondary supply and perhaps reduce reliance on imported primary metal. Automakers and other manufacturers have been seeking higher levels of recycled content to meet sustainability targets and regulatory pressure.

Sortera, founded by engineers with backgrounds in materials and instrumentation, is attempting to position itself as a domestic supplier solution at a time when U.S. policy and corporate initiatives increasingly seem to prioritize reshoring and circular supply chains for critical materials.