BMW Group Plans to Source Sustainable Aluminium From Rio Tinto

BMW Group plans to source aluminium with significantly reduced CO₂ emissions from Rio Tinto’s hydro-powered operations in Canada starting in 2024. Compared to conventionally manufactured aluminium, this approach can save around 70 percent of CO₂ emissions.

The planned supply volumes will be used exclusively in vehicle production at BMW Group Plant Spartanburg in the US state of South Carolina, in body components like the bonnet, for instance.

The technology developed for aluminium production is revolutionising the smelting process required for manufacturing, by generating oxygen instead of carbon dioxide.

In the supply chain of a mid-sized fully-electric vehicle around a quarter of the CO₂ emissions are attributable to aluminium.

The use of Rio Tinto’s blockchain technology also guarantees full traceability of the aluminium, all the way back to the original bauxite mine.

This enables end-to-end transparency throughout the supply chain and therefore plays an important part in tracking compliance with environmental and social standards for extraction of raw materials.

Joachim Post, member of the Board of Management of BMW AG responsible for Purchasing and Supplier Network, says: “We have clear goals for lowering CO₂ emissions in the supply chain. By using innovative materials, we can reduce our vehicles’ carbon footprint – even before handing them over to customers. The agreement to supply low-carbon aluminium is based on several pillars: in addition to hydroelectric power and a high percentage of 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.” 

Rio Tinto Chief Commercial Officer, Alf Barrios, adds: “Rio Tinto’s world-leading position in responsible aluminium production means we can offer innovative solutions to our customers on their decarbonisation journey toward net zero. 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.”

In addition to the carbon-free process, BMW's agreement with Rio Tinto also covers aluminium alloys produced using electricity from renewable energy sources, with CO₂ emissions that are only a third of the industry average.