The fire broke out shortly after 4:00 a.m at the scrap yard on the elevated Bloomingdale Trail near Austin and Cortland Avenues, CFD said.
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The incident was elevated to a two-alarm fire as the blaze spread through piles of scrap including wood, metal, fuel tanks and other materials to create "one big bonfire," according to Chicago Fire Department Cmdr. Frank Velez.
The Chicago Fire Department tweeted out a photo of the intense smoke and flames in the area.
No injuries were reported.
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The fire did not spread to any nearby buildings and crews struck out the blaze shortly after 5 a.m.,fire officials said.
CFD said crews were still at the scene to deal with hot spots.
The cause of the fire is still under investigation.