Automotive Partnership Announcement

by Dubaiforum
3 minutes read

Emirates Global Aluminium (EGA), a prominent player in the aluminium industry, has announced a significant expansion in its supply of CelestiAL solar aluminium to Hyundai Mobis, a leading automotive parts manufacturer. This strategic partnership is poised to enhance their collaborative efforts in producing value-added, sustainable aluminium products for the automotive sector while mitigating the environmental impact associated with traditional aluminium production processes.

A Sustainable Approach to Automotive Manufacturing

CelestiAL solar aluminium represents a groundbreaking innovation in the aluminium production landscape. Manufactured through a process that harnesses solar energy, this aluminium variant not only satisfies industrial demand but also plays a critical role in reducing greenhouse gas emissions. By diverting from conventional fossil-fuel-driven methods, CelestiAL signifies a crucial advancement toward sustainable practices that are increasingly demanded by modern manufacturing standards.

Since 2015, EGA has been supplying aluminium to Hyundai Mobis. The current agreement entails an annual supply of 66,000 tonnes of aluminium, a substantial contribution to the automotive parts supply chain. The initial phase of this partnership sees EGA supplying 8,000 tonnes of CelestiAL solar aluminium. However, by 2026, this volume is set to escalate to an impressive 15,000 tonnes. This growth reflects both EGA’s unwavering commitment to sustainable production and the escalating demand from the automotive market for environmentally-friendly materials.

Looking Towards the Future

As part of their ongoing collaboration, EGA and Hyundai Mobis are also laying the groundwork for a long-term relationship that extends beyond the current agreement. Discussions are underway to explore the supply of various value-added products, including aluminium billets, primary foundry alloys, and recycled aluminium. This proactive approach demonstrates the companies’ responses to global environmental concerns, particularly as regulatory frameworks regarding emission standards become increasingly stringent.

Abdulnasser Bin Kalban, the CEO of EGA, emphasized the company’s dedication to innovation, stating, “At EGA, we remain committed to delivering the highest quality, low-carbon aluminium to our customers.” His statement underlines the importance of integrating sustainability into the manufacturing process, thereby aligning with the global movement towards a more environmentally-responsible economy.

Complementing Kalban’s sentiments, Sun Woo Lee, Senior Vice President and Head of Procurement at Hyundai Mobis, highlighted the operational significance of the partnership. “With our partnership with EGA, we will proactively respond to global environmental regulations by establishing a green supply chain using low-carbon aluminium.” Lee’s statement reinforces the notion that the automotive industry is not merely reacting to regulatory changes but is actively engaged in pioneering sustainable practices.

A Remarkable Growth Trajectory

The implications of this collaboration extend beyond mere supply agreements. As of 2024, production of CelestiAL solar aluminium witnessed a remarkable 27% increase, reaching 80,000 tonnes. This production volume includes 8,000 tonnes of CelestiAL-R, a variant enriched with recycled content. Such growth signals not only the success of the solar aluminium initiative but also illustrates the broader trend toward incorporating recycled materials into production processes—a key component in the decarbonization of industries globally.

The partnership between EGA and Hyundai Mobis serves as a blueprint for how businesses in different sectors can collaborate to effect meaningful change. It underscores the responsibility of large corporations to take actionable steps toward sustainability, while also fostering innovation through research and development of new alloys that cater specifically to the needs of the automotive industry.

Conclusion

In summary, the expansion of EGA’s CelestiAL solar aluminium supply marks a significant milestone in the evolution of sustainable automotive manufacturing. By aligning their goals with a commitment to reducing environmental impact, both EGA and Hyundai Mobis are leading the charge towards a greener, more responsible future for the industry. Their initiatives not only showcase the potential of solar energy in industrial applications but also inspire other companies to rethink their approaches to sustainability. As the automotive and aluminium sectors navigate the complexities of global environmental challenges, partnerships like these stand as a testament to innovation, collaboration, and a shared vision for a sustainable future.

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