Japan and Brazil Partner to Bolster Low-Carbon Aluminum Supply Chain

The Japan Bank for International Cooperation (JBIC) has signed a Memorandum of Understanding (MOU) with Alumínio Brasileiro S.A. (ALBRAS), Nippon Amazon Aluminium Co. (NAAC), MUFG Bank, and Nippon Export and Investment Insurance (NEXI). This agreement aims to strengthen the low-carbon aluminum supply chain between Brazil and Japan, highlighting the strategic importance of sustainable materials in achieving Japan's decarbonization goals.

ALBRAS, located in Pará, northern Brazil, is a key supplier of low-carbon aluminum to Japan. The company uses renewable hydropower for production, ensuring significantly lower carbon emissions compared to the global average. The company’s production emits just 4.0 kg of CO2 per kg of aluminum, far below the global average of 12.9 kg. ALBRAS is jointly owned by Norsk Hydro ASA (51%) and NAAC (49%), a consortium of Japanese entities. As Japan relies entirely on imports for primary aluminum, the partnership with ALBRAS is critical for securing a stable supply of environmentally friendly aluminum products.

The MOU was announced during the Japan-Brazil Economic Forum in Tokyo on March 26, 2025, attended by Brazilian President Luiz Inácio Lula da Silva and Japanese Prime Minister Shigeru Ishiba. The agreement focuses on enhancing supply chain resilience through information sharing and exploring financing options to support ALBRAS’ operations. This collaboration underscores the role of low-carbon aluminum in Japan’s Green Growth Strategy.

ALBRAS has been a pioneer in sustainable practices, including its use of renewable energy and innovative waste management solutions. The company recently partnered with Hydro Rein and Atlas Renewable Energy to develop solar power projects in Brazil, further reducing its environmental footprint. These initiatives align with Japan's broader efforts to meet its 2050 carbon-neutrality target by integrating low-emission materials into its industrial supply chains.