Emirates Global Aluminium, the UAE’s largest industrial company outside the energy sector and the world’s biggest premium aluminum producer, has expanded its solar-powered aluminum supply agreement with Hyundai Mobis, South Korea’s automotive parts manufacturer. The expanded contract will nearly double annual deliveries of CelestiAL solar aluminum from 8,000 tonnes this year to 15,000 tonnes by 2026, marking a substantial increase in low-carbon metal supply for automotive applications.
The agreement extends a decade-long partnership between the companies that began in 2015, when EGA first started supplying conventional aluminum to Hyundai Mobis. The South Korean company, which ranks as the world’s sixth-largest automotive parts supplier, currently receives 66,000 tonnes of aluminum annually from EGA across all product categories. The expanded CelestiAL supply represents approximately 23% of Hyundai Mobis’ total aluminum purchases from the UAE producer by 2026.
Solar Technology Reduces Automotive Supply Chain Emissions
CelestiAL represents the world’s first commercially produced aluminum using solar power, manufactured at EGA’s facilities in Dubai and Abu Dhabi using renewable energy from the Mohammed bin Rashid Al Maktoum Solar Park and Noor Abu Dhabi solar installations. The solar-powered production process addresses the aluminum industry’s carbon footprint challenge, as electricity generation accounts for approximately 60% of global aluminum production emissions.
EGA tracks solar energy consumption through the International Renewable Energy Certification system, ensuring transparent verification of renewable energy use in aluminum smelting operations. This certification system provides automotive manufacturers with documented proof of reduced carbon emissions in their supply chains, helping companies meet increasingly stringent environmental regulations in major automotive markets.
The expanded agreement includes provisions for developing exclusive aluminum alloys tailored specifically for automotive applications. EGA and Hyundai Mobis will collaborate on metallurgical innovations that optimize aluminum properties for automotive components while maintaining the environmental benefits of solar-powered production.
Production Growth Supports Automotive Decarbonization
EGA’s CelestiAL production increased 27% in 2024 to reach 80,000 tonnes, including 8,000 tonnes of CelestiAL-R that incorporates recycled aluminum content alongside solar-powered primary metal.
The automotive industry’s aluminum consumption continues expanding as manufacturers pursue vehicle weight reduction to improve fuel efficiency and electric vehicle range. Aluminum’s combination of lightweight properties, corrosion resistance, and structural strength makes it essential for automotive applications ranging from engine blocks and transmission housings to body panels and chassis components.
Hyundai Mobis has committed to establishing green supply chains using low-carbon aluminum as part of its response to global environmental regulations. The company’s procurement strategy emphasizes sustainable materials that help reduce the carbon footprint of Hyundai, Genesis, and Kia vehicles while meeting performance requirements for automotive components.
Long-Term Partnership Development
The companies plan to explore extended cooperation beyond 2026, including potential supply agreements for value-added aluminum products such as billets, primary foundry alloys, and recycled aluminum. This expanded product range would provide Hyundai Mobis with comprehensive aluminum solutions while supporting EGA’s strategy to increase premium product sales.
EGA achieved an 82% share of value-added products in the first half of 2024, up from 77% in the first half of 2023, as the company focuses on higher-margin specialty aluminum grades rather than commodity metal sales. This product mix improvement contributed to EGA’s aluminum segment achieving a 27% adjusted EBITDA margin, placing the company first among global industry peers in profitability metrics.
The partnership expansion occurs as global demand for low-carbon primary aluminum is projected to triple by 2040, driven by automotive electrification, renewable energy infrastructure, and sustainable manufacturing initiatives.
Regional Manufacturing and Supply Chain Integration
EGA’s aluminum supply to Hyundai Mobis supports the South Korean company’s global manufacturing operations, including facilities in Brazil, India, China, and other markets where Hyundai Motor Group produces vehicles. The UAE’s strategic location provides efficient shipping access to Asian, European, and American automotive manufacturing centers.
The expanded CelestiAL supply agreement complements EGA’s recent five-year supply agreement with Adnoc for up to 1.5 million tonnes of calcined petroleum coke, valued at $500 million ($1.84 billion AED). This domestic raw material supply reduces EGA’s import dependence while strengthening UAE industrial integration under the “Make it in the Emirates” initiative.
EGA’s direct, indirect, and induced economic contributions to the UAE economy reached $6.4 billion ($23.49 billion AED) in 2024, representing 1.3% of the country’s GDP while supporting more than 52,000 jobs across the aluminum value chain.
Company Background and Market Context
Emirates Global Aluminium operates as the UAE’s largest industrial company outside the energy sector, producing approximately 2.7 million tonnes of aluminum annually from smelters in Dubai and Abu Dhabi. The company was formed in 2013 through the merger of Dubai Aluminium and Emirates Aluminium and is jointly owned by Mubadala Investment Company and Investment Corporation of Dubai. EGA’s integrated operations include bauxite mining in Guinea, alumina refining in Abu Dhabi, and aluminum smelting facilities that rank among the world’s largest single-site operations. The company pioneered commercial solar-powered aluminum production and continues expanding low-carbon manufacturing capabilities.
Hyundai Mobis serves as the automotive parts and service arm of Hyundai Motor Group, supplying components to Hyundai Motor Company, Genesis Motors, and Kia Motors. Founded in 1977 and headquartered in Seoul, South Korea, the company operates manufacturing facilities across multiple continents and ranks as the world’s sixth-largest automotive parts supplier. Hyundai Mobis specializes in chassis systems, safety products including airbags, electronic systems, and various automotive components. The company has emphasized sustainable supply chain development as automotive regulations increasingly focus on lifecycle carbon emissions.
Aluminum demand in the automotive sector continues growing as manufacturers pursue lightweighting strategies to improve vehicle efficiency and meet emissions standards. The metal’s recyclability and durability make it attractive for automotive applications, while solar-powered production addresses environmental concerns about aluminum’s traditionally high carbon footprint. Current aluminum prices reflect strong demand from automotive, construction, and packaging sectors, with supply constraints supporting premium pricing for low-carbon and specialty aluminum products.
