In the light of the anticipated emergence of a surplus of highly alloyed scrap in the near future, this article investigates the impact of alternative scrap treatment strategies that mitigate the quality losses that characterise the currently dominant downcycling approach. The environmental impact of the current downcycling strategy is compared to three other strategies to treat post-consumer aluminium scrap. Two electrolytic refining strategies are considered that can remove accumulated alloying elements and impurities from the aluminium scrap. This is one way to substitute more primary aluminium by scrap than what is possible in the downcycling approach. The considered electrolytic processes are the traditional Hoopes refining process and a novel low-energy variant. The fourth considered strategy is enhanced sorting of the post-consumer aluminium scrap by Laser-Induced Breakdown Spectroscopy (LIBS), a proven technology that can separate the aluminium scrap by alloy group, enabling as such more wrought-to-wrought recycling. The results of the assessment show that each of these three alternative strategies yields significant environmental benefits with respect to the common downcycling approach. By 2030, implementing the traditional Hoopes strategy, the low-energy Hoopes strategy or the LIBS sorting strategy would reduce the aggregated environmental impact with 1.5%, 5.5% or 15.9%, respectively. This result offers a strong argument in favour of adopting novel scrap sorting processes.