South Korean auto parts manufacturer Hyundai Mobis announced Wednesday that it has secured a 15 kiloton supply of low-carbon aluminum through a 62 billion won ($42.3 million) deal with Emirates Global Aluminum, a leading UAE aluminum producer.
Low-carbon aluminum, produced using solar power, is considered eco-friendly due to its significantly lower emissions during the manufacturing process.
While conventional aluminum production emits approximately 16.5 tons of carbon per ton of aluminum, EGA’s solar-powered production reduces this to about 4 tons — just a quarter of the usual emissions.
As part of its commitment to achieving carbon neutrality by 2045, Hyundai Mobis will use this sustainable aluminum for lightweight mobility solutions, incorporating it into key automobile components such as chassis. The exact adoption date has not been decided.
By proactively adopting green aluminum, Hyundai Mobis is also positioning itself to minimize the impact of environmental regulations, including the European Union’s Carbon Border Adjustment Mechanism, set to take effect next year.
Looking ahead, Hyundai Mobis plans to expand its use of low-carbon aluminum and strengthen its commitment to eco-friendly mobility by establishing a sustainable supply chain.
“By building a sustainable supply chain, Hyundai Mobis aims to proactively comply with global environmental regulations and drive carbon reduction efforts from the initial stages of production,” said Lee Sun-woo, senior vice president of purchasing at Hyundai Mobis.
spark@heraldcorp.com
