As tailpipe emissions decline due to the adoption of electric vehicles, there is increased focus on car production which accounts for 60% of an EV’s climate impact. Of those production emissions, around one-fifth comes from producing aluminium for the chassis, battery and other parts. But new T&E research finds that switching to low-carbon or ‘green aluminium’ could cost as little as €25 extra per car by 2040 – and can help build a clean tech industry in which Europe has an advantage over other regions.
Aluminium is produced from bauxite ore, and smelting it is an electricity intensive process. To smelt one tonne of aluminium requires 10 times the electricity consumed by the average EU household in one year. Due to Europe’s comparatively cleaner electricity grid, the EU would have a competitive advantage in green aluminium production over other regions. Green aluminium – defined as using recycled aluminium or using primary aluminium made with electrified heating and new production technologies – can drive down emissions even more.
The automotive sector consumes over one-third of the aluminium produced in Europe. Switching to green aluminium for EU car manufacturing by 2040 would save as much CO2 emissions as removing 900,000 fossil fuel cars from the road, according to the T&E report. It finds that content targets – for the use of 60% and 85% green aluminium in new cars in 2035 and 2040 respectively – are achievable and would help scale the technology, driving down costs. This could add as little as €25 to the price of a car in 2040.
Michael Carron, battery and materials researcher at T&E, said: “Electric vehicles are far better for the planet than combustion engines. Thanks to green aluminium, that advantage is only going to grow. Europe’s comparatively clean power grid means it's poised to lead the world in this technology, but it won’t happen without mobilising one of the biggest consumers of aluminium, the auto industry. Smart targets and local content requirements can help unleash this potential.”
Europe imports more than half of the primary aluminium it consumes. This dependency is expected to grow as aluminium is increasingly used in EVs and other clean technologies – while the number of smelters in the EU has halved over the last decade. To help reverse the fortunes of the EU aluminium industry and make it a climate leader, the content targets should require green aluminium to be made in Europe, T&E said. The EU should also set targets for the use of recycled, locally-sourced aluminium and limit exports of scrap aluminium.
T&E called for green aluminium content targets to be set for carmakers when the EU Commission publishes its Industrial Accelerator Act next month. Only green aluminium made in Europe should be eligible. As part of the upcoming Circular Economy Act, the Commission should also propose aluminium recycling targets – based on locally sourced scrap – in a targeted amendment to the End-of-life Vehicles Regulation.
