Hyundai Mobis is set to integrate low-carbon aluminium, produced using solar energy, into the manufacturing of key automotive components starting this year. This initiative is a crucial step in the company’s commitment to achieving carbon neutrality by 2045.
The company announced that it has signed a contract with Emirates Global Aluminum (EGA), a leading global aluminium producer, to secure 15,000 tonnes of low-carbon aluminium. Headquartered in Dubai, UAE, EGA produces this eco-friendly aluminium using solar power. As a vital material for lightweighting electric vehicles and other mobility solutions, aluminium plays a key role in sustainable transportation. By prioritising eco-friendly raw material procurement, Hyundai Mobis aims to strengthen its green supply chain and support the transition to cleaner mobility.
"We will proactively respond to global environmental regulations by establishing a green supply chain and embody our efforts to reduce carbon emissions from the supply chain stage," said Sun-woo Lee, senior vice president of purchasing, Hyundai Mobis.
The secured 15,000 tonnes represent Hyundai Mobis’ annual aluminium requirement, valued at approximately 62 billion Korean won. This accounts for more than 20 per cent of the company's total aluminium purchases last year, which amounted to 67,000 tonnes.
Low-carbon aluminium is considered an eco-friendly material because its production generates significantly lower carbon emissions. Typically, producing one ton of aluminium—including refining, smelting, and casting—emits approximately 16.5 tonnes of carbon. In contrast, EGA’s green aluminium, produced using solar energy, emits only about 4 tonnes of carbon—just a quarter of the emissions associated with conventional aluminium.
Hyundai Mobis plans to actively comply with global environmental regulations by incorporating the green aluminium introduced this year into the production of key components, such as chassis. Notably, with the European Union set to fully enforce the Carbon Border Adjustment Mechanism (CBAM) regulation next year, this move is expected to help Hyundai Mobis minimise its impact. CBAM is a program that measures and taxes the carbon emissions of imported goods, focusing on six high-emission products: steel, aluminium, electricity, fertiliser, cement, and hydrogen.
Hyundai Mobis remains committed to expanding its use of low-carbon aluminium as part of its broader efforts to enhance ESG management and achieve carbon neutrality. To ensure a stable and systematic supply of eco-friendly aluminium, the company plans to establish a strategic partnership with EGA in the first half of this year.
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