Hyundai Mobis will buy 15,000 tonnes of low-carbon aluminium from Emirates Global Aluminium (EGA), marking the first step in its plan to use solar-powered aluminium into main automotive components this year.
The deal, announced today, represents more than 20 per cent of the 67,000 tonnes of aluminium the company had bought in 2024.
The 15,000 tonnes, priced at around 62 billion won, will be used in chassis and other critical parts as part of Hyundai Mobis’ intention to achieve carbon neutrality by 2045.
Low-carbon aluminium produced by Dubai-based EGA using solar energy emits roughly 4 tonnes of CO2 per tonne of aluminium, compared with about 16.5 tonnes of CO2 for conventionally produced material.
By integrating this greener input at the raw-material stage, Hyundai Mobis expects to reduce its overall supply-chain emissions significantly.
The shift to low-carbon aluminium also aims to mitigate the impact of the European Union’s Carbon Border Adjustment Mechanism (CBAM), which from 2026 will levy charges on the carbon content of imported goods, including aluminium.
By using green aluminium now, Hyundai Mobis anticipates lower CBAM liabilities on its products destined for the EU.
Further collaboration with EGA is planned, with Hyundai Mobis set to form a strategic partnership in the first half of 2025 to ensure a stable and systematic supply of low-carbon aluminium.
