<p>This study evaluates the environmental impact and energy demand associated with manufacturing one unit of an automotive crash management system (CMS) using life cycle assessment (LCA), based on detailed process data from industrial operations in Norway and Sweden. To explore the circularity of aluminium within the automotive industry, this study introduces a comparative analysis between open-loop and closed-loop recycling scenarios, quantifying their respective global warming potential (GWP), energy demand, and toxicity impacts. By modeling a realistic open-loop scenario and a hypothetical yet technically feasible closed-loop system, this research aims to provide new insights into the role of recycling strategies in enhancing material circularity and reducing environmental impact, an aspect that remains underexplored in current LCA literature on aluminium automotive components. For LCA, cradle-to-gate and cradle-to-cradle system boundaries were employed for the manufacturing and recycling scenarios, respectively. The comparison of the recycling pathways shows that closed-loop recycling significantly reduces environmental burden across different midpoint and endpoint environmental indicators. Similarly, closed-loop recycling results in lower energy demand when compared with open-loop recycling. Sensitivity analysis reveals that sourcing primary aluminium from China instead of Norway nearly triples the GWP due to coal-based electricity and extended shipping distances. Results of the Monte Carlo simulation indicate higher uncertainty of closed-loop recycling due to change in recycling process loss percentage. Overall, this research highlights the environmental advantages of closed-loop recycling and encourages future work on advanced recycling technologies, regional sourcing impacts, and strategies that support long-term sustainability and the circular economy development.</p>