Hyundai Mobis announced on the 2nd that it has secured 15,000 tons of low-carbon aluminum through a contract with Emirates Global Aluminum (EGA), a global aluminum production corporation.
This amounts to approximately 62 billion won, accounting for 20% of Hyundai Mobis's total aluminum volume (67,000 tons) last year. EGA produces aluminum using solar energy. Typically, producing one ton of aluminum emits 16.5 tons of carbon, but this can be reduced to about 4 tons when produced with solar energy.
Starting this year, Hyundai Mobis plans to proactively apply EGA's aluminum in the manufacturing of key components such as chassis. Particularly, the European Union (EU) will fully implement the Carbon Border Adjustment Mechanism (CBAM) starting next year, and Hyundai Mobis aims to minimize its impact by securing this low-carbon aluminum supply.
The Carbon Border Adjustment Mechanism is a system that imposes costs based on the carbon emissions of products imported into Europe. Six categories of carbon-intensive products are targeted: steel, aluminum, electricity, fertilizers, cement, and hydrogen. Hyundai Mobis is planning to secure a stable supply through its partnership with EGA.
Lee Sun-woo, the purchase head (executive director) at Hyundai Mobis, noted, “We will respond proactively to global environmental regulations by building an eco-friendly supply chain and will specify carbon reduction efforts from the supply chain stage.”