Rio Tinto and BMW Group have joined forces to develop more responsible, sustainable, traceable, and secure supply chains for the high-end auto industry, as demand for vehicles made from sustainably sourced materials increases.
The companies signed a Memorandum of Understanding (MoU) to confirm the new partnership, which will see Rio Tinto provide responsibly-sourced aluminium to the BMW Group’s vehicle production plant in Spartanburg, South Carolina, for use in body components from 2024.
The agreement between the two companies will see technical experts working together on how to embed these low-carbon solutions into the BMW Group’s supply chain while ensuring the highest standards of vehicle quality are maintained.
As premium car buyers become more interested in the origin, sustainability, and emissions profile of the materials used to build their vehicles, Rio Tinto Chief Commercial Officer, Alf Barrios, said, “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.”
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 per cent in CO2 emissions compared to the BMW Group’s benchmark for aluminium.
BMW AG member of the Board of Management, responsible for Purchasing and Supplier Network, Joachim Post, said, “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 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.”
The partnership provides for the use of aluminium produced using ELYSIS™ on BMW production vehicles. ELYSIS is the world’s first carbon free smelting technology for aluminium as it enables the production of aluminium metal without direct carbon dioxide emissions during the smelting process, instead emitting pure oxygen.
Rio Tinto and the BMW Group will also work to deploy START from Rio Tinto. START provides supply chain traceability to customers and consumers with information about provenance and ESG standards.
Canada’s Minister of Innovation, Science and Industry, François-Philippe Champagne, said, “Canada is a global destination of choice for low-carbon investment. This exciting partnership between BMW and Rio Tinto is proof that Canada is well positioned to seize the economic benefits of the clean economy.
“I am proud to see that low carbon Canadian aluminium will be going into BMW’s vehicles. Canada will continue to enhance our competitive advantages – abundance of critical minerals, skilled labour, clean energy, proximity to markets – to grow our economy and to support made-in-Canada innovation.”
