We recently published a list of 10 Best Aluminum Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Rio Tinto Group (NYSE:RIO) stands against other best aluminum stocks to buy according to billionaires.

Aluminum is one of the most essential and versatile materials required by modern industries. It is known due to its unique qualities including its lightweight nature, corrosion resistance, and efficient recyclability. As industries move toward sustainability and efficiency, aluminum is seeing an increase in its demand. In 2023, its global market was valued at $229.83 billion, which is forecasted to grow to $403.29 billion by 2032, a compound annual growth rate (CAGR) of 6.2%, according to Fortune Business Insights. As demand rises for electric vehicles (EVs), green energy, and lightweight manufacturing, aluminum is becoming an attractive investment.

One of the big reasons why aluminum is seeing a rise in demand is its usage in electric vehicles. Heavier metals are being replaced with aluminum to increase fuel efficiency and driving range by automakers like BMW and Mercedes. The U.S. aluminum market is expected to reach $43.05 billion by 2032 as EV manufacturers ramp up the use of aluminum in order to make vehicles lighter and more energy-efficient. Furthermore, the aerospace industry also plays a key role in its demand. As global air travel recovers, Boeing and Airbus are ramping up production, relying heavily on aluminum alloys for fuselages and wings.

Additionally, the packaging industry is booming as companies make use of aluminum’s 100% recyclability. Aluminum-made beverage cans contain 3x to 12x more recycled material compared to other materials, resulting in less wastage and energy consumption, as per The Aluminum Association. The circular economy is gaining momentum as manufacturers rely on recycled aluminum in order to cut costs and emissions. Moreover, recycling aluminum saves energy that goes toward producing new metal, making it a leap forward in sustainability efforts.

While demand for aluminum increases, the trade war over metals is gaining traction. According to The New York Times, U.S. President Trump recently reintroduced 25% tariffs on imported aluminum to protect U.S. manufacturers. While this move will raise costs for automakers, beverage companies, and construction companies relying on imported aluminum, the domestic producers may benefit. On the other hand, Canada and European countries are retaliating with reprisal tariffs, increasing global supply chain uncertainty. Producing 45 million metric tons of aluminum annually, China has capped its output. This implies that the increasing demand will be fulfilled through recycling and secondary sources. Thus, the global supply chain can face uncertainties and lead to price rises as U.S. tariffs escalate trade tensions.

Furthermore, an important stride in the aluminum space is the increase of aluminum-ion batteries. These are considered potential alternatives for lithium-ion batteries, as they offer faster charging, longer lifespan, and decreased costs. According to Future Market Insights, the market for aluminum-ion batteries is forecasted to grow to $9.5 billion by 2035 due to demand for renewable energy and electric vehicles. Considering that aluminum is cheaper and more abundant than lithium, this transition could transform energy storage and transportation.

On the other hand, billionaire investors are increasing their investments in the aluminum industry, reflecting strong confidence in its growth potential. Blackstone CEO, who is supporting U.S. aluminum tariffs, expects domestic manufacturing to propel, as reported by Reuters. Concurrently, AI Circle reports that Malaysian tycoon Koon Poh Keong and Song Zuowen, a Chinese billionaire, are increasing their investments in aluminum ventures through strategic stake swap. Furthermore, aluminum stocks are giving a return of 4.32%, year-to-date, surpassing the broader market’s -4.13% performance. Thus, these billionaire-backed entries reflect the industry’s strength and future potential.

Our Methodology

To come up with the Best Aluminum Stocks to Invest in According to Billionaires, we looked into Insider Monkey’s database for billionaire stock holdings as of Q4 2024. We placed the stocks on the basis of the number of billionaires that have invested in them, as it reflects strong institutional confidence.

In the case where stocks had the same number of holders, we used the total value of billionaire investments to break the tie. Furthermore, this list includes stocks backed by some of the most accomplished hedge fund managers and business leaders, offering perspective into where billionaire investors are allocating their capital.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Aerial view of an open pit mine, with workers extracting minerals.

Rio Tinto Group (NYSE:RIO)

Number of Billionaires: 9

Number of Hedge Fund Holders: 39

Rio Tinto Group (NYSE:RIO) is a leading global company specializing in the mining and processing of aluminum, iron ore, copper, and other minerals. The company manages a fully integrated aluminum production chain, including bauxite mining, alumina refining, and aluminum smelting. Its headquarters is in London, and it has a major presence in Australia, Canada, and other important markets.

The company reported an underlying EBITDA of $23.3 billion for the year ended December 31, 2024, a decrease of 2% year-on-year, majorly driven by lower iron ore prices. On the other hand, Rio Tinto Group (NYSE:RIO) saw significant performance in its aluminum segment, as its EBITDA rose by 61%, supplemented by stronger bauxite and aluminum pricing.

Moreover, net operating cash flow was $15.6 billion due to better cost controls and efficiency gains. The company distributed $6.5 billion in dividends, upholding a 60% payout ratio for the ninth consecutive year, reflecting its continued commitment to shareholder returns. Regardless of macroeconomic hurdles, Rio Tinto Group (NYSE:RIO) maintained a strong balance sheet, positioning it well for future investments.

Furthermore, the company continues to scale up its portfolio for renewable energy in order to enhance sustainability in its aluminum operations. Rio Tinto Group (NYSE:RIO) signed a 20-year hybrid solar and battery storage agreement on March 12, 2025, with Edify Energy to drive its Gladstone aluminum operations in Australia. The agreement ensures a stable supply of clean electricity as it includes 600 megawatts of solar energy and 2,400 megawatt-hours of battery storage. It will support 80% of the electricity needs for the Boyne aluminum smelter, bringing down carbon dioxide emissions by 5.6 million tons annually. This project comes under Rio Tinto’s broader effort to secure 2.7 gigawatts of renewable energy to power its aluminum production.

Conclusively, under its continued investments in renewable energy and efficient operations management, Rio Tinto Group (NYSE:RIO) is adding to its position as a market leader in sustainable aluminum production. In light of financial stability, and long-term strategic initiatives, the company remains a top choice among the best aluminum stocks to buy for investors looking to access the sector.

Overall, RIO ranks 7th on our list of best aluminum stocks to buy according to billionaires. While we acknowledge the potential of RIO, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RIO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

Disclosure: None. This article is originally published at Insider Monkey.