The Strategist

Rio Tinto and BMW agree to supply and use greener aluminum

02/22/2023 - 07:05

Rio Tinto revealed that it would provide BMW with aluminum made in Canada using hydroelectric power. This will lessen the carbon footprint created by the automaker's metal purchase.

Both the German manufacturer and the British mining business announced in separate releases that they had signed a memorandum of agreement.

According to the messages, aluminum will start to be supplied to the BMW plant in Spartanburg, South Carolina, commencing in 2024, from Rio Tinto's hydropower plants in Canada. No supply volume information has been provided. According to Rio Tinto, the deal "may lead to a decrease in carbon dioxide emissions of up to 70% compared to BMW Group's selected baseline for aluminum."

Joachim Post, the board member of BMW AG responsible for purchasing and supplier network, "the low-carbon dioxide aluminum supply agreement" also seeks to "raise the usage of aluminum without direct carbon dioxide emissions during smelting."