Hyundai Mobis has announced a $42.3 million (KRW 62 billion) deal with Emirates Global Aluminum (EGA) to secure a 15-kiloton supply of low-carbon aluminum to reduce carbon emissions in manufacturing. The South Korean auto parts manufacturer plans to use the material for lightweight mobility solutions, incorporating it into key automobile components like chassis. The exact adoption date has not yet been determined.
The low-carbon aluminum, produced using solar power, has significantly lower emissions compared to conventionally produced aluminum. EGA’s solar-powered production emits approximately 4 tons of carbon per ton of aluminum, which is about a quarter of the 16.5 tons emitted during conventional aluminum production.
This move aligns with Hyundai Mobis’s goal of achieving carbon neutrality by 2045 and minimizing the impact of environmental regulations such as the European Union’s Carbon Border Adjustment Mechanism (CBAM). The CBAM regulation is a program that calculates and charges the carbon emissions of products imported into Europe, targeting six carbon-intensive products: steel, aluminum, electricity, fertilizer, cement, and hydrogen. Hyundai Mobis intends to expand its use of low-carbon aluminum and build a sustainable supply chain.
