Diversified miner Rio Tinto and automotive giant BMW on Tuesday announced a memorandum of understanding (MoU) for the supply of low-carbon aluminium from Canada into the BMW supply chain.
Under the new partnership, Rio Tinto plans to provide aluminium to BMW’s vehicle production plant in Spartanburg, South Carolina, for use in body components from 2024.
The companies said that the low-carbon primary aluminium from Rio Tinto’s hydro-powered operations in Canada, combined with recycled content, could generate a reduction of up to 70% in carbon dioxide (CO2) emissions compared with BMW’s benchmark for aluminium.
Rio Tinto uses Elysis to produce aluminium. It is a carbon-free smelting technology that enables the production of aluminium metal without direct CO2 emissions during the smelting process, instead emitting pure oxygen.
The companies will also work to deploy START from Rio Tinto. It provides supply chain traceability to customers and consumers with information about provenance and environmental, social and governance standards.
“As global demand for responsibly sourced materials continues to grow, automakers are increasingly looking to partner with suppliers who share their commitment to traceability and sustainability. Rio Tinto is proud to play a role in helping to drive a greener future in the premium car industry through this partnership with the BMW Group and we look forward to deepening our ties with the automotive industry in the years ahead,” comments COO Alf Barrios.
BMW member of the board of management responsible for purchasing and supplier network Joachim Post said the automotive giant had clear goals for lowering CO2 emissions in the supply chain.
“The agreement to supply low-carbon aluminium is based on several pillars: in addition to hydroelectric power and secondary material, we also want to lead the automotive industry by ramping up our use of aluminium with no direct CO2 emissions from the smelting process.”