U.S. Automobile Metal Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)

U.S. Automobile Metal Market Growth Factors

Move toward Lightweight Materials Is Major Trend

• The market is experiencing a transformation through the usage of lightweight materials.
• The usage of aluminum, high-strength steel, and advanced alloys helps automakers achieve better fuel economy by producing lighter vehicles.
• According to the U.S. Department of Energy, reducing the weight of vehicles by 10% can lead to an increase in their fuel economy by up to 8%.
• Electric vehicle manufacturers also prefer lightweight materials because they extend the driving range of EV batteries.
• The automobile industry maintains steel as its primary material choice for building vehicle parts, while beginning to combine aluminum with composite materials for constructing frames, structures, and panels.

Growing Production of Electric Vehicles

• The growth in EV manufacturing is a key element that fuels the continuous market advancement.
• The IEA says that EV sales increased in the U.S. by 40% in 2023 from 2022.
• Moreover, as per an article by CNBC, EVs made up a record 20% of total automobile sales in the country in 2024.
• Major car manufacturers are augmenting EV production due to government support and environmental concerns, leading to the growing demand for specialized metals.
• Being lighter than steel, aluminum receives preference from auto manufacturers for manufacturing EV battery enclosures and frames.
• This drives the demand for copper, which is essential for wires and motor windings, both of which are critical components of EVs.
• This encourages metallurgical companies to augment their metal processing and smelting capacities to meet this growing demand.

U.S. Automobile Metal Market Segmentation Analysis

Metal Analysis

Steel is the leading category with a share of 40% because of its strength, affordability, and broad applications in vehicle manufacturing. Manufacturers heavily rely on steel for body structures, safety components, and frames because it provides durability and crash resistance. Automobile manufacturers choose advanced high-strength steel (AHSS) to lower vehicle weights without compromising on safety. Steel is the material of choice for internal combustion engine (ICE) vehicles, which still dominate the country’s automotive sector despite the strong push for ZEVs.

The metals analyzed here are:

• Aluminum (Fastest-Growing Category)
• Steel (Largest Category)
• Magnesium
• Titanium
• Iron
• Copper
• Others

Vehicle Type Analysis

Passenger cars lead the market with a share of 45% because of their abundant production, rising demand for fuel-efficient cars, and growing focus on EVs. Manufacturers are using aluminum and AHSS for better performance, enhanced safety, and stronger fuel efficiency. EVs speed up this trend since lighter materials extend the driving range, which is a key buying criterion for customers. This is why aluminum is widely used for body panels and chassis, while steel still predominates structural elements. As per OICA, 1,745,171 cars were manufactured in the U.S. in 2023

The vehicle types Analyzed here are:

• Passenger Cars (Largest Category)
• Light Commercial Vehicles (Fastest-Growing Category)
• Heavy Commercial Vehicles
• Others

Propulsion Analysis

The ICE category had the largest share in 2024, of 55%, as conventional vehicles are still manufactured and sold in greater volumes than EVs. These vehicles are cheap, well-understood, and ahead in terms of driving range, ease of refueling, speed, and haulage capacity. Due to its strength, affordability, and crash resistance, steel continues to be the main material used in ICE vehicles. Additionally, aluminum is finding greater usage to enhance fuel efficiency and comply with stricter emission rules.

The propulsions analyzed here are:

• Internal Combustion Engine (ICE) (Largest Category)
• Battery Electric Vehicle (BEV) (Fastest-Growing Category)
• Hybrid Electric Vehicle (HEV)
• Plug-in Hybrid Electric Vehicle (PHEV)
• Fuel Cell Electric Vehicle (FCEV)

Manufacturing Process Analysis

Stamping is the leading category, with a share of 45%, because this technique effectively creates body frames, chassis systems, and structural frameworks. Manufacturers of automobiles use stamping to transform steel and aluminum into complex forms and preserve material strength. This process produces components that are lightweight, as well as match safety standards.

The manufacturing processes analyzed here are:

• Stamping (Largest and Fastest-Growing Category)
• Forging
• Casting
• Machining
• Welding & Fabrication
• Others

Application Analysis

Body panels lead the market with a share of 35% because these components form the fundamental structure, enhancing vehicle aerodynamics and creating visual appeal. Automobile body panels used to be made from steel because of its strength and cost efficiency, but manufacturers are now substituting it with aluminum to achieve weight reduction and better fuel efficiency. The growth of the electric vehicle (EV) industry is a key driver here as lightweight components stretch the driving range.

The applications analyzed here are:

• Engine Blocks
• Wheels
• Transmission Housings
• Suspension Systems
• Body Panels (Largest and Fastest-Growing Category)
• Interior Trims
• Roll Cages
• Brake Rotors
• Frame
• Axles
• Gears
• Bearings
• Car Chassis
• Doors
• Others

U.S. Automobile Metal Market Regional Outlook

The Midwest region dominates the market with a share of 45% as this region contains major automakers and tier-1, -2, and -3 suppliers, which creates a high demand for steel, aluminum, and other metals. The region also has numerous large manufacturing facilities dedicated to steel milling and metal production.

The regions analyzed here are:

• Northeast
• Midwest (Largest Category)
• West
• South (Fastest-Growing Region)

U.S. Automobile Metal Market Competitive Landscape

• The U.S. automobile metal market is moderately consolidated as large companies dominate most of the market, while smaller companies maintain dominance in special segments.
• Major players, such as ArcelorMittal, U.S. Steel, Nucor, Alcoa, and Novelis, supply essential metals steel, and aluminum to automotive manufacturers.
• The key players in the market make use of their large-scale capabilities, advanced processing abilities, and established supply networks.
• Mid-size companies use their expertise in lightweight alloys to compete in this market.
• Due to the increase in demand, several companies are using mergers and acquisitions to expand their capabilities and sustainability initiatives, along with developing lightweight material expertise.

U.S. Automobile Metal Market News & Updates

• In February 2025, ArcelorMittal S.A. announced plans to build an advanced steel manufacturing plant in Calvert, Alabama, to meet the increasing demand from the U.S. automotive Sector. The plant would have an annual capacity of 150,000 metric tons of non-grain-oriented electrical steel, which is essential for larger vehicles.
• In December 2023, Nippon Steel Corporation decided to invest USD 14.9 billion in U.S. Steel Corporation.